6:23 am, July 25, 2025
Group 1 Automotive’s operations in the UK saw a 94% revenue increase and more than doubled its gross profit in the first half of 2025, driven by strong growth in retail volume.
Its revenues in the first half of the year rose from £1.18bn to £2.3bn, with gross profit going up by 109.6%, to £313m.
The company has also reported that its gross margin in the UK improved from 12.6% to 13.6%, aided by a revised sales mix and improved efficiencies in aftersales.
The business has been amid a restructure since August last year and is expected to announce a raft of redundancies soon, after integrating Inchcape UK’s dealerships into the group following a £346m deal last year.
A spokesperson for the company said: ‘In line with other retailers, we continue to face cost headwinds relating to tax increases announced in the last Budget, and in response we have identified opportunities to remove duplication, streamline processes and decentralise certain roles to drive efficiencies across the business.’
This is despite a backdrop of strong sales, with retail sales of new vehicles up by 90% to 32,960 units, while used vehicle sales climbed 89.5% to 41,580 units.
Group 1’s UK parts and service revenue more than doubled, increasing 105% to £240m, with gross margin in aftersales rising to 57.2%, up slightly from 56.6% last year.
During Q2, Group 1 closed two Mercedes-Benz dealerships as part of ongoing efforts to optimise the group’s UK portfolio.
Group 1 president and chief executive Daryl Kenningham said the UK market remains challenging. ‘Integration efforts are largely complete and most UK brands are performing to expectations, with positive momentum anticipated in the second half of the year,’ he said.
‘We’ll continue to pursue balanced growth while executing opportunistic share repurchases. Additionally, we’re actively reviewing underperforming sites and developing appropriate plans.’
Pictured: Group 1 BMW and Mini, Hindhead, Google Maps
