10:18 am, July 1, 2026
Dealer group Cars2 has confirmed a small dip in profits, despite turnover soaring in a year which saw its employees take control of the company.
According to documents, recently filed via Companies House, Cars2 was sold to an Employee Ownership Trust (EOT) back in January 2025.
Accounts covering the 12 months to the end of December 2025 show that the firm made a pre-tax profit of £3.78m, compared to £4.11m in the previous year.
Bosses admitted that ‘considerable operational disruption and transition costs’ did have an impact throughout the year, with the firm also making several adjustments to its dealer network.
Despite this, the Yorkshire-based retailer still saw revenues rise in its first year of employee ownership, with turnover shooting up from £207.59m to £220.21m.
Elsewhere, return on investment remained high at 1.7%, with gross profit margin sitting at 6.4%. The year also saw new car registrations up 8% the on previous period, despite what directors called a ‘challenging EV focused market’.
Meanwhile, used vehicle sales volumes remained stable at over 4,000 units and total aftersales sold hours increased by a significant 24% to over 72,000 hours.
Throughout the year, the firm made a number of changes to its dealer network, including ditching its Seat franchise and investing heavily in partnerships with Chinese manufacturers including Omoda, Jaecoo, Chery and Geely.
Reflecting on the period, director Allan Otley said: ‘The company entered 2025 with the transfer of Cars 2 Limited into an Employee Ownership Trust (EOT) on 31 January 2025. Since incorporation Cars 2 Limited has traded as a privately owned business.
‘The establishment of the sale to the EOT received full support from all Cars 2 Limited brands and financial partners and was widely supported by the company’s employees.
‘The company also had a declared strategy to re-align brands within the company property portfolio to ensure brands with the highest potential and future opportunity had appropriate presence within the company’s geographic trading arca of West and South Yorkshire.
‘Throughout the past year we have traded through considerable operational disruption and transition costs to reorganise the group within an acceptable timescale.
‘During 2025 we have also developed the Huddersfield facility to accommodate a new Renault-Dacia sales and aftersales operation and opened a second Omoda-Jaccoo full facility in Barnsley, to replace the relinquished Seat franchise.
Looking forward, bosses remain optimistic about the future and say the firm is on track to perform well in 2026.
Otley added: ‘There remains a degree of uncertainty in the EV marketplace, again caused by the moving Government policy following announcements in the 2025 budget statement.
‘The business is well placed to embrace any opportunities that present for further strategic expansion with new or existing brands.
‘During 2025 the company secured the Omoda-Jaecoo and Chery representation for the Bradford marketplace and this facility started trading in the first quarter of 2026.
‘Also opened in 2025 was the new Geely facility in Wakefield and the Bradford territory has also been secured for this brand and due to begin trading in Q3 of 2026.’
Elsewhere in the accounts, it is revealed that Group2’s staffing costs rose to £11.69m in 2025, with employee numbers increasing to an average of 280. At the same time, directors’ remunerations came in at a reduced £882,228.
No ordinary dividends were paid and the directors did not recommend any final payment.
