Park Garage Group has blamed the need to improve its car valeting service following the Brexit vote for an 88% fall in profits.
The forecourt operator posted a pre-tax profit of £154,501 for the year ending 30 June 2016, down by £1.2m.
Turnover also plummeted by almost £10m from £137m in 2015.
The Hayes-based company’s results come after it went through a “major rebranding refit”, which saw eight of its shops closed for a month for expansion works and signage changed from Gulf to Shell.
The company said the improvements could increase shop turnover by 20%.
It said it also expected a 46% increase in turnover from its car valeting service after installing high-tech rollers, jet washes, and air machines at all of its 49 sites.
The “huge” £700,000 investment was in reaction to the “Brexit scenario”, according to Park Garage Group joint MD Balraj Tandon, who explained it was important to make the investment sooner rather than later given the economic uncertainty following the referendum vote.
“Last year there was quite a huge disruption in the business due to investment,” said Tandon.
He added: “But we’re already seeing the results from the car wash programme, which has increased [turnover] by 30%.”
Tandon said Park Garage Group’s decision to change suppliers in May 2016 from Palmer & Harvey to Bestway Wholesale had caused the biggest disruption.
But he added he expected the switch, made to make substantial savings and increase its range to customers, to show considerable results.
“We think profits should be up to around £3m next year,” he said.
“Last year, profit went up by £1m and straight away we would get that back, plus extra growth being forecasted.”
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