Scania dealer Keltruck targets used truck sales

But the West Bromwich-based firm continued to invest in staffing levels, with its total workforce rising to 431 by the end of 2016.

The largest independent Scania dealer in Europe, the company now has 17 sites across the UK in addition to its base in Kenrick Way, West Bromwich, and its depot in Willenhall.

After a surge in lorry sales in 2015 Keltruck said it had been prepared for the slowdown last year. Its aftersales and serving business was static but it saw an 11 per cent surge in sales of used Scania vehicles, up by £2.5 million.

The end result was revenue down by £3.2 million in 2016, to £152.5m, while pre-tax profits were down to £5.3m from £5.7m the year before.

The figures have just been filed at Companies House. In the accompanying report the company said: "The UK market for heavy trucks was anticipated to decrease throughout 2016, after an increase in 2015, although the franchise market remained constant.

"The used vehicle market was anticipated to remain buoyant in terms of volumes. Whilst values were expected to come under pressure due to the buoyant new vehicle market the objective was to increase volumes to counter this impact."

Looking ahead, the company said: "Despite a healthy forward order-book for new vehicles we anticipate this area of the business will remain static.

"Used vehicle sales continue to be a competitive market and our objective remains to increase volume in order to offset a reduced margin.

"The forecast for aftersales is for service revenues and overall parts sales to remain static and to ptimise on margin retention through continuous improvement of productivity and efficiencies.

"Activity levels and customer confidence remain strong and the company remains well places to take advantage of any market opportunities that may be presented."

The company was founded by Chris Kelly in 1983. Mr Kelly, now 68, retired in 2012. His son, also called Chris and the former Conservative MP for Dudley South, is now the company chairman.