The Management Board of the Czech Republic-based AAA Auto Group N. V. motor retailer approved at a recent board meeting a plan for restructuring the Group to restore profitability, including the sale of non-core businesses and some of the company¡¯s properties.

 

The company¡¯s core business is the sale of used cars, and most of the firm¡¯s new car division, which generates an ¡°insignificant¡± part of the company¡¯s revenues, will be divested. The subsidiaries to be offered for sale are called General Automobil and HK Partner.

 

AAA Auto has however decided to buy CarWay Holding B.V. which has been one of the company¡¯s most important subcontractors providing ¡®up-sell¡¯ products and assistance services.

 

On 11th April AAA Auto Group N.V. published its audited consolidated financial results for 2007; revenues reached €470.1 million (+34.9%), gross profit on sales amounted to €80.1 million (+25.4%), EBITDA stood at €4.0 million, but the consolidated loss amounted to €4.8 million.

 

The volume of cars AAA AUTO Group sold on its five Central European markets increased by 29.0% y/y to a total of 79,871. The revenues from car sales amounted to €422.7 million (+34.9%). Revenues from F&I reached €41.3 million (+38.2%) and its contribution to Group¡¯s gross profit grew to 51.6%.

 

AAA Auto¡¯s bottom-line loss was influenced by higher accounting charges related to unrealized forex losses after the year-end accounting reconciliation of liabilities in local currencies.

(www.aaaauto.cz)

From: autoindustry.uk/news