Universal Salvage - a New Year Star - ****BREAKOUT***
uplighter - Wed, 20 Dec 06 :
Since taking the helm at Uni- versal Salvage 18 months ago, Avril Palmer-Baunack has done a terrific job returning the business to health.
The company manages the collection and disposal of vehicles, typically ones damaged in an accident or of low value, for a broad range of clients including motor insurers, car dealers and local authorities. It generates sales through weekly auctions.
Yesterday's interim results showed further progress at Universal.
It reported a pre-tax profit of £900,000, compared with a loss of £700,000 a year earlier, helped by strong auction results, the high price of scrap metal and lower costs. Net debt fell to £2.2m from £5.5m a year ago. Going forward, the group expects good trading conditions and predicted new contracts to help increase profitability.
Universal has found that growing numbers of East Europeans are attending its auctions following the entry of countries like Lithuania, Poland and the Czech Republic to the European Union. They tend to then re-sell the cars in their home country and this trend has made the company's auctions more competitive and therefore more successful.
