Universal Salvage, the UK's largest vehicle salvage company, posts a massive rise in pre-tax profits to £5.5m for the year ending April 29, despite turnover nearly dropping £2m to £87.6m.
The company posted a £200,000 pre-tax profit for the same period last year.
Chairman Alexander Foster said the marked improvement was due to the strategy put in place two years ago by the new management team, chiefly the increased marketing of vehicles to auction houses and new terms with insurers.
He said: "It was the board's objective to improve the company's quality of earnings and develop additional sources of revenue."
Universal Salvage has initiated three new developments in the year: firstly, a website,
secondly, StatUS – an extranet version of the salvage management system, and thirdly, the acquisition of Select Online Spares for £100,000, a spare parts locator business.
StaUS will be launched soon following a successful trial period with key motor insurers.
The system enables customers to have total transparency over the salvage process.
Foster adds: "The board is committed to continuing to improve and extend the services that Universal offers and the launch of StatUS and Universal Select, together with our website, not only enhances our core salvage activities but also provides exciting new business opportunities.
"This new financial year has started well and I look forward to reporting further progress to you as we continue to grow the company."