Covid-19 pandemic cost Highland car dealership more than £700k

A HIGHLAND car dealership has revealed it lost more than £700,000 in the first half of 2020 due to the pandemic.

But Hawco and Sons is optimistic it will return to a break-even position following a strong performance after reopening.

The situation was outlined in the firm’s latest accounts which showed turnover and pre-tax profit dropped last year compared to the previous 12 months.

A strategic report stated: "With continued uncertainty surrounding Brexit, business interruption due to the global Covid-19 pandemic and risk of further disruption, the times ahead are increasingly uncertain.

"The board have however demonstrated in recent years its ability to react quickly, make difficult decisions, manage cash flow and adapt the business to the changing environment.

"The business lost £726,000 in the first half of 2020 as a result of business interruption from late March to the end of June as a result of the global pandemic. Trading performance has been strong in the two months since reopening, and we expect to be back to break even by the end of quarter three."

Turnover for the Inverness-based dealer decreased from £75,020,723 in 2018 to £73,860,197 last year. For the same period, pre-tax profit fell from £427,312 to £67,764.

The average number of employees dropped from 194 in 2018 to 186 last year, while staff costs dropped from £5,926,570 to £5,898,742.

The report added: "The motor industry is evolving rapidly to react to external influences such as the changing retail landscape, changes in consumer expectations, the move from traditionally-fuelled vehicles and the new challenges relating to social distancing as the result of the global Covid-19 pandemic.

"It is important that the business embraces these changes while remaining agile and efficient if it is to continue to prosper."

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