PEOPLES Motor Group is eyeing an acquisition to increase its presence in England despite a near halving of its profits.
Chairman Brian Gilda revealed the business saw sales rise 2.2% to £144.3 million in the 12 months to the end of July 2011 although pre-tax profits fell from a record £3.04m to £1.6m.
The end of the Government scrappage scheme in March 2010 coupled with the VAT rise in January last year and the uncertain outlook for the economy all contributed to the decline at the Ford dealership.
However, Mr Gilda was pleased with the performance and maintained it was still the company's second best year in terms of profitability.
He said: "If one measures it against the prior year you might not see quite how good it was. All our Christmases came together in the prior year with scrappage, an economy which was almost booming and VAT.
"Last year's financial performance gave me a lot of good feelings as we were right in the teeth of a hell of a storm.
"Higher unemployment, pay freezes, the eurozone crisis, record petrol and diesel prices, all contributed to what was a difficult and challenging year.
"But my people performed well in all parts of the business.
"I'm comfortable with what is happening and am actually looking at buying another business in England right now."
Around £100m of sales are through three dealerships in Merseyside with the rest coming from sites in Edinburgh, Livingston and Falkirk.
The best-selling models continue to be the Focus and Fiesta while the after-sales servicing and used car divisions also performed strongly.
Mr Gilda confirmed trading in the current year is challenging but he is confident of success.
He said: "Half-year results, to the end of January, are very slightly ahead of the same period last year. We had expected the economy would go down with VAT going up.
"Our business relies on people feeling good and buying things. We could not see too much of a feel-good factor so we put our budgets back between 12.5% and 15% but if things continue as they are I would expect we will hit the same numbers as last year, which would be impressive."
The committed Labour Party backer, who supported Johann Lamont's successful bid to lead the party in Scotland, is also against the idea of an independent Scotland.
Mr Gilda said: "I'm the same as any other ordinary Joe in this country: I need to get the hard facts. I would be arguing for staying in the UK but I would be doing it in a positive sense.
"We have to have an honest, civilised and adult debate about the whole thing and I don't think we are there yet.
"It is not because two-thirds of the business is in England and we have been there since 1998. Purely and simply I believe the best place to be in troubled times or in good times is part of the UK."
Peoples, which employs 400 people, spent more than £1m of the 2010 profits rebuilding the Speke dealership opposite John Lennon Airport in Liverpool
It also upgraded IT, telecoms and systems across the company.
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