1:21 pm, October 6, 2026
Cotswold Motor Group saw pre-tax profits surge by almost 50% last year following what directors described as a ‘strong year’ for used car sales.
The Gloucestershire-based dealer group made a pre-tax profit of £4.57m in the year ended December 31, 2025 – up 49.3% from £3.06m in the previous 12 months.
Turnover increased 7.9% from £223.65m to £241.43m, while gross profit climbed 9.2% from £21.32m to £23.29m.
Operating profit performed even more strongly, rising 26.5% from £5.27m to £6.67m.
After a tax charge of £1.38m, the dealer group was left with a bottom-line profit of £3.19m, compared with £2.38m in 2024.
Writing in the firm’s strategic report, director Andrew Hulcoop said: ‘The year ended 31 December 2025 has seen increased profitability in comparison to the previous year.
‘The vehicle sales departments have seen an increase in their departmental profits thanks to a strong year on used car sales.’
The results represent a particularly strong performance from Cotswold, which has until 2026 remained solely focused on the BMW and Mini brands, with sites in Cheltenham and Hereford. In August 2026, it opened a new Geely showroom in Cheltenham.
Directors described 2025 as a ‘record delivery year’, although performance differed between new and used cars.
New car sales units fell by 5%, with the accounts highlighting downward pressure on new car margins from BEV targets.
There was better news on the used side of the business, where sales increased by 31%.
Directors said part of the increase reflected the impact of vehicle holds in the previous year, which had affected the 2024 comparative.
They added: ‘Gross profit was adversely affected by the delivery hold placed by the manufacturer on several new and used models in the previous year which has not been the case in 2025.
‘This year also saw increased volume and profitability in used car sales which has pushed up margins.’
The group’s aftersales operation remained profitable, although labour hours fell 3%, primarily as a result of a reduction in warranty work. Overall aftersales profitability remained largely flat year-on-year.
Cotswold also ended the year carrying significantly more stock after bosses deliberately increased inventory ahead of 2026.
The strategic report says the business took a ‘strategic choice to increase stock holding ready for the first quarter’, ending the year with an additional £6m of stock compared with 2024.
The balance sheet shows total stock rising from £35.52m to £41.66m, including £41.22m of vehicle stock.
The group’s stock-turn KPI consequently increased from 63 days to 69 days, above the company’s stated aim of keeping the figure at or below 60 days.
Meanwhile, the average number of employees fell slightly from 338 to 331, but total staff costs increased from £13.21m to £14.05m.
Directors’ remuneration rose from £423,504 to £484,070, with the highest-paid director receiving £255,911.
The company also paid shareholders dividends totalling £600,000, having paid none in 2024. No further dividend was recommended.
Looking ahead, Cotswold said controlling its cost base would remain a key priority throughout 2026.
Hulcoop added: ‘Once again, the business was well prepared with excellent results, and continues to monitor our cost base, keeping these in control is a key pillar for long term financial stability for the business.
‘This will be a continued focus area for 2026.’