25 September 2023

Arnold Clark saw profit before tax in the year ended December 2022 drop from £263m to £173.5m. This was despite revenue increasing from £4.74bn to £4.92bn, driven largely by new car unit price increases.

However, the directors stressed that 2021 was a record year – and 2022’s performance ensured it was still Arnold Clarks’ second most profitable year ever.

The group reported significant increases to its underlying operating costs, particularly employment costs which rose by £45m, and increased property rates, finance and utility costs.

In October 2022, the retailer brought forward its annual pay review exercise by three months, with pay adjustments of up to 9% effective from January 2023. Its minimum pay rates “remain significantly above the proposed national minimum wage [of £10.42] announced by the UK government in November 2022”.

CEO Eddie Hawthorne referenced the retailer’s 2022 Christmas Eve cyber attack but said that “despite the system issues experienced at the start of the year, I remain cautiously optimistic about 2023”.

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