McConechy's Tyre Services, Scotland's biggest independent in the specialised market for truck tyre supply and repairs, has recorded a 53% rise in profits as it continues its comeback from a hefty plunge last year.
In its latest set of financial accounts, obtained by The Herald from Companies House, the Ayr-based company, which has 50 branches, revealed a pre-tax profit of £975,942 for the year to the end of April, compared with £636,368 the year before.
However, those 2006 figures were down from more than £1.2m in the previous 12 months after restructuring costs - which included the closure of a retreading plant at Paisley and management reorganisation - cut deep into the firm's underlying profits.
Turnover this time climbed 7% to £33.8m, compared with £31.5m the year before.
In the company's annual accounts, the directors said they were "pleased to note continued improvement in the group's results".
The report added: "Careful control of administrative costs together with the results of reorganisation in 2006 resulted in administrative expenses being static."
The directors also said that the company intended to invest £1.4m this year as part of its ongoing programme of refurbishments, relocations and acquisitions.
Donald Carmichael, the company's managing director, declined to comment on possible acquisitions, except to say: "We are alive to what is happening in the market, although we have made no acquisitions yet."
He added: "I can tell you that conditions are still tough out there, but it has been a good year and we are very pleased with the way the year has gone."
Asked if he expected the company this year to surpass its 2005 pre-tax profit figure of £1.2m, Carmichael said: "We are very happy with our first quarter this year, but that's all I'm prepared to say at this stage."
McConechy's was founded in 1956, when Hector McConechy took over a converted pigeon hut and horse stables on Peebles Street in Ayr and opened his first tyre service depot.
Eighteen months later, a former cinema in Kilmarnock became depot two, followed by Stranraer a year later.
Now the business is primarily owned by Hector's son, Derek, who is chairman.
McConechy's underwent a step change in size in 2002 when the firm bought 30 outlets from Goodyear and Dunlop, giving the company the scale to compete with big national players such as Kwik-Fit. The deal doubled McConechy's employee numbers to about 400.
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