Arnold Clark: UK car dealership pays founders’ family £67m dividend
Arnold Clark, one of the UK’s largest car dealerships, has given the surviving family of its billionaire founder £67m worth of dividends, according to the latest Companies House filings.
The sum brings the total money the family has taken out of the business to £118m over the last two years and comes after a record year of sales revenue.
A combination of pent-up demand post pandemic and soaring inflation in the price of new and second hand vehicles has seen UK car dealers rake in significant profits since the pandemic.
The filings show the average price of a second hand car sold by Arnold Clark rose 48 per cent since before the pandemic, with new cars also jumping 27 per cent.
The bumper dividends come despite Arnold Clark seeing a dip in pre-tax profits to £173m, down from last years’ booming £260m of earnings.
Meanwhile chief executive Eddie Hawthorne received £4.6m, taking his total pay over the last five years to £23.5m.
Arnold Clark, which operates around 200 sites across the country, is currently the UK’s second largest dealership and is well ahead of rival listed firms’ Lookers and Pendragon.
The late Sir Arnold Clark, a billionaire Scottish businessman, founded the company in 1954 and his wife currently chairs the company.
Arnold Clark were approached for comment.