Company Snapshot: Lindsay Cars Ltd
On the right track for improvement
Lindsay Cars is the main outlet for new Ford cars in a large segment of the Northern Ireland vehicle market.
The report by the directors says that the total market for new cars in Northern Ireland, after a fall in 2009, increased by 3.9% in 2010. Changes in sales of new Ford vehicles were slightly lower but Ford retained a market leadership position with a 10.3% share, compared to a 10.7% share in 2009. The company also notes that Madza's retail share fell slightly from 3% to 2.8%.
Turnover at Lindsay Cars, at £115m, is one of the largest local vehicle businesses. Turnover was highest in 2007 when it reached £124m. Thereafter it fell by 3% in 2008 and a further 5% in 2009 before the small improvement in 2010. The trading results in 2010 were influenced by a further decrease in new vehicle sales which was more than offset by an increase in sales of used vehicles.
Operating profit margins fell last year and this is explained by the company as a reflection of the much tougher market conditions affecting new car sales. Pre-tax profits are, each year, lower than operating profits because of the deduction of net interest payments on the funds borrowed, largely internally, through the financing arrangements of the Ford group of companies.
Average employment in the company varies a little from year to year but has increased marginally by 3% in 2010 to 413 people.
No dividends to shareholders have been declared in each of the last three years.