8:26 am, August 10, 2026
Dealer group Barretts has returned to profit, despite a £29m drag on new car turnover as a result of manufacturer partners switching to agency sales.
The retailer recently posted its annual accounts via Companies House, showing a pre-tax profit of £0.6m in the 12 months to the end of December 2025.
The small profit represents a complete turnaround on 2024’s results, when the car dealer posted a loss before tax of £1.38m.
The numbers could have been even stronger if not for the hack on JLR’s computer system, which bosses say had an ‘adverse impact on revenue and profitability in September and throughout Q4’.
The year also saw partners Mini and Honda switch to an agency model, which bosses say resulted in a £29m drop in new car revenue throughout the year.
That contributed to overall turnover over the year being down, dropping from £271.92m to £263.44m.
Elsewhere, new-car unit sales fell from around 15% from 2,520 to 2,140, with directors saying profitability was also hit by increased vehicle supply and the ZEV Mandate.
Meanwhile, used vehicle sales increased 16.2%, from 2,700 to 3,130, amid a more ‘stable and predictable’ market than in 2024.
The group’s adjusted EBITDA also improved significantly, rising from £1.87m to £3.12m over the year.
However, its net cash position fell from £1.89m to just £160,000, with cash outflow after financing and capital expenditure totalling £1.7m.
The year also saw Barretts closed its bodyshop facility after a review of the company’s ‘operational requirements’.
Reflecting on the period covered by the accounts, director Paul Barrett said: ‘Barretts of Canterbury Limited achieved a profit on ordinary activities before taxation of £0.6m.
‘New car registrations increased by 3.5% nationally during the year. However, registrations across the company’s manufacturer portfolio declined by 3.9%.
‘Turnover from new vehicle operations decreased by £29m, primarily reflecting the introduction of the agency model by Mini and Honda.
‘The new vehicle market remained highly competitive, with profitability significantly impacted by increased vehicle supply levels and the continued influence of the ZEV mandate.
‘The used vehicle operation performed strongly during the year against a backdrop of a more stable and predictable market.’
He added: ‘A cyber incident experienced by a key OEM partner in September 2025 disrupted production and distribution activities for several weeks and affected the availability of vehicles and parts globally.
‘The resulting reduction in vehicle deliveries and aftersales activity had an adverse impact on revenue and profitability in September and throughout Q4.’
The accounts also reveal that employee numbers also fell during the year, dropping from 465 to 442.
Despite this, staffing costs rose slightly to £19.62m, with directors’ remuneration coming in at an increased £305,000.
Since the end of the accounting period, Barretts has expanded its dealer network with the acquisition of Broad Oak’s Kia and Nissan sites in Canterbury earlier this year.
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