8:06 am, October 2, 2026
Dealer group D.M. Keith saw pre-tax profit collapse by almost 88% last year despite turnover soaring to more than £435m.
The Yorkshire-based business made a pre-tax profit of just £309,583 in the year ended December 31, 2025, compared with a restated £2.56m in the previous 12 months, latest accounts via Companies House show.
The dramatic fall came despite turnover increasing 17.1%, from a restated £371.64m to £435.13m, as the group benefited from a full year of trading at its expanding BYD operation and businesses acquired during 2024.
Gross profit actually declined despite the huge increase in revenues, falling from £24.11m to £23.50m, while operating profit more than halved from £3.25m to £1.49m.
After tax, D.M. Keith was left with a profit of just £43,989, compared with £1.77m in 2024.
Writing in the accompanying report, director Dougal Macdonald Keith said: ‘Profitability declined compared with the prior year, reflecting a broader downturn in the motor retail market with challenging market conditions affecting performance across much of the sector.’
He added that the group had continued to strengthen its position through ‘the development of both established and emerging manufacturer partnerships’.
The group’s finance bill also increased significantly during the period, with interest payable and similar expenses rising from £965,765 to £1.37m.
Despite the pressure on profits, D.M. Keith enjoyed significant growth in vehicle volumes.
The dealer sold 19,516 vehicles during the year, compared with 16,552 in 2024 – an increase of 17.9%.
New retail sales were particularly strong, jumping 36.7% from 5,526 units to 7,553, while used retail volumes increased 5% from 2,448 to 2,570.
Fleet sales went in the opposite direction, falling 18.4% from 4,308 to 3,515, with directors saying the decline principally reflected fewer ‘VAG’ fleet deals during the year.
The accounts show vehicle sales generated £410.84m of turnover, with a further £24.29m coming from aftersales.
Meanwhile, the company said its six BYD businesses remained in their ‘growth phase’, but added that progress had been encouraging, with profitability expected to improve as market share and customer retention increase.
D.M. Keith also continued investing in its relationship with Changan, developing locations in Leeds, Wakefield and Bradford during 2025.
A fourth Changan site subsequently opened in Sheffield in early 2026.
Directors said the investments supported the group’s ‘long-term strategy of developing partnerships with emerging manufacturers’.
The expansion continued after the end of the financial year, with D.M. Keith acquiring JAM300 Limited, a Subaru and Mercedes-Benz authorised repairer business, in March.
The group’s workforce also expanded, with the average number of employees rising from 608 to 664.
An interim dividend of £173,478 was paid during the year, down from £388,246 in 2024, with directors recommending no further dividend.
The accounts also reveal that D.M. Keith has restated its 2024 figures after identifying an accounting issue relating to whether the group was acting as principal or agent on certain vehicle sales.
The change reduced the previous year’s reported turnover from £394.08m to £371.64m.
However, the company said the restatement had no impact on 2024 profit after tax, the balance sheet or the statement of changes in equity.