8:39 am, September 30, 2026
Dealer group Ancaster fell from a near-£630,000 profit in 2024 to a £2.2m pre-tax loss last year as rising employment costs, higher interest charges and £1.4m of one-off costs hammered profitability.
The south-east dealer group recorded the loss despite turnover increasing by 1.6% to £245.43m in the year ended December 31, 2025. That compared with revenues of £241.63m in the previous 12 months.
However, the increased sales failed to translate into improved profitability, with gross profit remaining virtually unchanged at £33.10m, compared with £33.07m in 2024.
Operating profit then plunged from £2.76m to just £253,153, while EBITDA dropped from £3.98m to £1.73m.
The deteriorating performance, combined with higher finance costs, resulted in Ancaster recording a pre-tax loss of £2.20m, having made a profit before tax of £628,755 in 2024.
After tax, the dealer group recorded a £1.90m loss, compared with a £445,174 profit the previous year.
In its strategic report, Ancaster said operating profit had been affected by increased costs arising from higher National Insurance contributions and minimum wage increases.
It also incurred one-off costs connected with the closure of three sites following lease expiries and the transfer of two businesses to its new flagship Hyundai dealership in Chislehurst.
The group said non-recurring costs totalled £1.4m, including a £290,000 dilapidations provision and a £100,000 provision relating to an asbestos-related claim.
Interest costs also increased during the year, with the accounts showing interest payable and similar expenses climbing from £2.17m to £2.48m.
Despite the loss, bosses say the changes made to the business are already beginning to bear fruit and expect Ancaster to return to the black this year.
The directors said in the report: ‘The directors remain confident that the business will return to profitability in 2026. Trading in Q1 2026 has started positively, performing ahead of budget and significantly ahead of Q1 2025.’
The accounts also reveal how Ancaster has been reshaping its dealership portfolio as it looks to reduce costs and add emerging manufacturers.
During 2025, the group opened a new flagship Hyundai dealership in Chislehurst, replacing existing sites in Catford and Dartford after their leases ended.
Those operations were relocated to Chislehurst in March 2025, alongside Ancaster’s head office, which moved from Croydon after the lease there expired.
The directors said the consolidation was expected to ‘reduce the group’s cost base while significantly enhancing the customer experience’.
Its West London dealership in Shepperton was refranchised from Nissan to MG in July 2025, while Changan was introduced into a vacant Dartford showroom in October.
Omoda and Jaecoo were also launched at the group’s vacant Welling dealership in May 2026.
Ancaster said its trade parts operations in Croydon and Heathrow also grew both turnover and profitability year-on-year.
The directors said they remain confident in the group’s strategy of ‘sustainable growth’, focused on London and the south east, adding that nearly 60% of its dealerships are owned freehold.