McConechy's Tyre Services, the expanding independent Scottish tyre and exhaust business, has posted a 25% rise in profits and unveiled five acquisitions in spite of the rising cost of raw materials and business overheads.

McConechy's Tyre Services, the expanding independent Scottish tyre and exhaust business, has posted a 25% rise in profits and unveiled five acquisitions in spite of the rising cost of raw materials and business overheads.

In its latest set of financial accounts, obtained by The Herald from Companies House, the Ayr-based firm which has become Scotland's biggest independent in the specialised market for truck tyre supply and repair with 55 branches, revealed pre-tax profits of £1.2m for the year to the end of April, compared with £975,942 the previous year.

The performance has been achieved amid a potentially damaging climate of higher oil prices, the rising cost of raw goods, particularly those made from petrochemicals, and a credit crunch.

Nonetheless, the company said it was investing substantially in branch refurbishment, with a replacement branch at Blairgowrie already in operation, and two new branches at Montrose and Brechin under construction, and plans for another at Brechin.

In March, the company also added five branches, following the acquisition of Gordons Tyres in Yorkshire, and added that McConechy's was continuing its "policy of expansion when all the conditions are right".

The accounts revealed that McConechy's spend just over £1m in acquisitions last year and that its expansion hit interest payments, which climbed to £701,286, compared with £546,605 the previous year.

Turnover climbed to £35.5m, compared with £33.8m last time at the business, which now employs 383 staff.

The accounts reveal that McConechy's highest-paid director, assumed to be Donald Carmichael, managing director, climbed to £286,725 including company pension contributions, compared with £216,752 the previous year.

A dividend of £10,064 was shared between shareholders.