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Sir Arnold’s car business is in the fast lane for growth

Sir Arnold Clark
Sir Arnold Clark

Scottish motor retailing giant Arnold Clark has revealed a salary package worth £3.38million for one of its bosses.

The figure is thought to reflect the 2014 pay award to Sir Arnold Clark, the Glasgow company’s founder, chairman and chief executive.

Accounts released by Companies House yesterday also showed the firm made pre-tax profits of £107.3million last year, a 26% rise from £85.17million in 2013.

Turnover soared to a record £3.26billion in the latest period, from £2.92billion previously.

Sir Arnold and his family were ranked 13th on a list of Scotland’s richest people published by the Sunday Times earlier this year, with a fortune of £675million.

The entrepreneur, who celebrates his 88th birthday next month, opened his first car dealership in Glasgow’s Kelvinside in 1954.

Recent expansion includes the acquisition of Inverness-based Ness Motors earlier this year for an undisclosed sum.

Arnold Clark, which has more than 200 UK car showrooms, also bought a Belmont dealership at Kenmay in Aberdeenshire from John Martin Group in a £1million-plus deal.

In addition, the firm acquired Grangemouth-based John R. Weir Group, including Mercedes-Benz and Smart dealerships in Aberdeen and Inverness, in a multimillion-pound move.

The 2014 trading year coincided with the company’s 60th anniversary.

Delivering his annual statement, Sir Arnold said: “It was a truly remarkable year for the group.

“We anticipate that 2015 will be a more challenging year than 2014 and expect that the new car market will remain relatively static, with used cars showing modest growth.”

Arnold Clark underperformed the wider UK market for new car sales last year, with a 3.1% increase to 91,477 vehicles.

But the firm said used vehicle sales “performed very strongly”, with a 10.8% increase to 158,384 units. Like-for-like used vehicle sales grew by 9.3%.