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New and used car dealer group Heritage Automotive saw its pre-tax profit plummet by more than half last year on turnover that rose by over a fifth.
The Car Dealer Top 100 firm’s newly published accounts for the year ended December 31, 2023 – filed as MM (SW) Ltd – show that turnover grew by 21.8% from £179.286m to £218.311m but profit before tax sank by 52% from £4.155m to £1.996m.
Ebitda, meanwhile, fell to £5.245m from £7.048m – a drop of 25.6%.
Ordinary dividends of £4m were paid but the directors didn’t recommend paying a final dividend.
Directors’ remuneration wasn’t given, with the notes to the financial statements saying they’re remunerated by another group entity, which wasn’t specified. But auditor RSM UK Audit LLP stated that it didn’t have anything to report regarding it and under its legal obligation.
Last October, Blade Motor Group transferred its Cheltenham Audi, Gloucester VW, Seat and Skoda plus Bristol Seat & Skoda businesses to Heritage, whose registered office is in Salisbury.
In the accompanying strategic report, signed on behalf of the board by director John Walsh, Heritage Automotive said: ‘New vehicle supply improved during 2023, sales volume increased 23.5% year on year from both increased sales and from the newly transferred businesses.
‘However, margins came under pressure from consumer demand.
‘Towards the end of the year, used vehicles saw a price correction which has since stabilised.
‘Aftersales continued to perform well and both sold labour hours and turnover grew year on year, from both organic growth and the transferred businesses.’
It added, though, that recruiting technicians was still a challenge.
The report stated as well: ‘The directors are encouraged by the current progress and the commitment demonstrated by the Heritage team.
‘The company continues to trade profitably, is well funded and will continue to capitalise on new business opportunities as they arise.’
An increase in stock together with higher interest rates raised the company’s interest charges by £406,000.
The average monthly number of employees rose from 323 to 357.
In April this year, Heritage transferred to Blade Motor Group its Salisbury Audi & VW, Yeovil VW & Skoda, Dorchester VW & Ineos plus Gloucester Ineos businesses. It also transferred its 95% ownership of its Yeovil VW trade parts specialist outfit.
Pictured at top via Google Street View from September 2023 is what was Heritage Automotive’s Skoda dealership in Yeovil
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The post Heritage Automotive suffers profit fall of more than 50% as margins come under pressure appeared first on Car Dealer Magazine.
