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Supercar dealer H.R. Owen saw its profits slashed by almost 70% last year as it joined the rest of the industry in battling difficult market conditions.
Accounts published via Companies House show that the luxury retailer made a pre-tax profit of £2.29m in the 12 months to June 30, 2024.
The figure is 69.6% down on the same period last year, when the firm made £7.57m with bosses admitting that external factors, like global supply chain issues, had impacted performance.
The decreased profit was achieved against shrinking revenues, with turnover dropping from £567.12m to £556.55m – a slide of almost 2%.
The documents show that vehicle sales revenue also decreased by 2% to £501.8m, compared to £510m in 2023.
Insiders have put this down to lower new and used vehicle sales volume, which fell around 4%.
Throughout the year, the company sold a total of 2,853 units, compared to 3,006 last time out, which amounted to 1,162 new cars and 1,691 used units.
Aftersales revenue was also £2.5m lower at £54.8m, which bosses have put down to the group’s ‘economic trading environment’.
Despite the setbacks, there was some good news nestled in the accounts, with the group’s net assets increasing from £66.9m to £67.7m.
The firm also cranked up capital expenditure and has recently launched specialist pre-owned vehicle sales operations and Lotus franchises in Cardiff, Hatfield, and Manchester.
Elsewhere, wages and salaries cost £25.38m with the firm’s highest paid director receiving £1.31m.
Reacting to the results, director Denise Grimston put the tumbling profits down to ‘weakening pre-owned vehicle sales margins and cost inflationary pressures’.
She said: ‘The automotive retail industry in the UK has experienced a dynamic and challenging period over the last 12 to 18 months, shaped by ongoing supply chain disruptions, rising demand for electric vehicles, inflationary pressures, higher interest rates, lower residuals of pre-owned vehicles, and changing consumer preferences.
‘We will continue to grow our aftersales operation along with pre-owned vehicle sales to help mitigate any potential future decline ni the new vehicle market.
‘We have recently launched Specialist pre-owned vehicle sales operations & Lotus franchises in Cardiff, Hatfield, and Manchester.
‘Our primary goal is to place our customers at the centre of everything we do. We aim to offer the best brands in optimal locations, supported by outstanding talent to provide an exceptional customer experience.
We remain committed to developing and motivating our colleagues, ensuring consistent operational excellence and service delivery across the group.
‘Our focus is on attracting top talent by offering competitive compensation packages and a supportive work environment where personal growth is actively encouraged.’
H.R. Owen has been in operation for 92 years, having been established in 1932, and now runs sites in Berkshire, Cheltenham, Hatfield, London, Stockport and Surrey.
Its portfolio boasts some of the world’s biggest luxury brands including Aston Martin, BAC, Bentley, Bugatti, Czinger, Ferrari, Hennessey, Lamborghini, Lotus, Maserati, Radford, Rimac and Rolls-Royce.
The firm’s Bentley, Ferrari, Lamborghini and Rolls-Royce operations are the largest in the UK by new vehicles units sold.
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The post Luxury car dealer H.R. Owen sees profits slashed with new and used car sales down appeared first on Car Dealer Magazine.
