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BMW and Mini specialists Cotswold Motor Group – which operates a huge super-showroom in Cheltenham – raked in profits of £4.4m in 2023.
The group, which operates BMW, Mini and Motorrad bike sales in Cheltenham, car sales from Hereford and a bodyshop in Tewkesbury, saw pre-tax profit drop some 40% on the previous bumper year.
In 2022, a year many car dealers made record profits, the group clocked up pre-tax profits of £7.8m.
Turnover last year rose by 10% to £235m (2022: £214m) as the new car market ‘returned to normality’, said director Andrew Hulcoop, in the firm’s accounts just filed at Companies House.
He wrote: ‘During 2022, the business had more opportunity to achieve greater margins on vehicles sold due to continued scarcity of both new and used vehicles.
‘2023 saw supply return and the scarcity reduce which has affected margins.’
Hulcoop said his firm aimed for a stock turn rate (average number of days to sell a car) of 60 days. In 2023 this was 63 days, down from 66 in 2022.
Hulcoop explained the business was also keeping a close eye on costs and conducted a ‘full review’ at the end of 2023.
‘This focus will continue throughout 2024,’ he added.
‘A full cost review took place and non-essential costs were identified and removed from the business.’
Cotswold Motor Group saw new car sales grow by 5%, but gross profit remained static which was ‘a reflection of normality returning to the new car market’.
Used car sales were up 15% in the year, but gross profit on those sales was down marginally.
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Hulcoop added: ‘Increased new car availability had an impact on residual values and there was a degree of used car revaluation that took place in the [second half of the year] as a result of this.’
Bike sales were down 7% and were ‘the only sales department not to report growth’. Aftersales income remains static.
As of the end of 2023, the group had 342 staff members while the highest paid director received remuneration of £213,588.
In 2022 the group paid an £8.3m dividend to shareholders but none was declared for 2023.
The Car Dealer Top 100 will soon reveal the most profitable car dealer groups in the UK. Our annual survey will be published soon.
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