Reports: Axle Group Recorded £3.2 million Operating Loss in 2008
Axle Group Holdings reported an operating loss of £3.2 million in 2008, compared with operating profit of £4.2 million in 2007. However, sales from Axle’s National Tyres & Autocare retail chain and its Viking tyre wholesale business grew 13.4 per cent to £153 million. According to the Herald newspaper, Axle Group generated a £3.8 million profit on the sale of properties to another company controlled by chief executive Alan Revie and this is believed to have helped the company achieve a pre-tax profit of £3 million in 2008, down from £5.2m in 2007. The pre-tax profits came off the back of gross profits of £60.5 million in the 2008 (39.5 per cent of sales in 2008). However in 2007, Axle Group made a gross profit of £56.7 million, or 42 per cent of sales.
15 months ago Alan Revie unveiled plans to inject £12 million into the National chain and increase its UK estate from around 200 branches to 320 over five years. However, according to the Herald’s report, the head of the National Tyres auto repair chain appears to have enjoyed a 400 per cent increase in pay in the past year. The newspaper points out that accounts for Axle Group Holdings, which owns National Tyres, show the total emoluments of the highest paid director, soared to £2,126,000 in 2008, from £540,000 in the preceding year. The total boardroom payroll jumped to £4,057,000, up from £1,335,000 in 2007.