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The introduction of a hub and spoke network has helped offset the cost pressures being felt in road transport, BCA Automotive Services has said.

BCA Automotive Services, the logistics division of BCA Automotive, incorporates the business that was formerly Stobart Automotive. In January BCA, which runs more than 700 vehicle transporters, restructured its supply chain operations following its acquisitions of Paragon Automotive and car preparation firm Ambrosetti last year.

For the year ending 2 April 2017 turnover in its Automotive Services division stood at £303.5m, compared to £102.9m in the year-ending 3 April 2016, incorporating a full year of Stobart Automotive and other acquisition activity. Adjusted EBITDA stood at £17.2m, up from £4.2m in the previous year.

BCA Executive Chairman, Avril Palmer-Baunack, said: “In July 2016 we acquired Paragon Group, the leading provider of de-fleet and refurbishment vehicle services in the UK, and an important component towards achieving our vision to be the leading, integrated, automotive services business.

“In March 2017 we acquired an alloy wheel refurbishment business, Supreme Wheels Direct, adding to our range of in-house services. These acquisitions are consistent with our strategic aim to provide a seamless and efficient one-stop shop for the passage of vehicles throughout their life cycle,” Palmer-Bauncak added.

In its preliminary results it told investors the cost pressures experienced in UK logistics in the prior financial year were addressed “largely through greater stability of the driver team.” It added a change in the business model at BCA

saw the roll out a hub and spoke network, a process that enabled the use of the in-house fleet for longer distance moves. Profitability it said, improved as a result of these actions.

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