8:39 am, August 5, 2026
Dealer group Drive Motor Retail saw a sharp fall in profits last year despite posting strong revenues.
Newly filed accounts for the Leicester-based company show turnover jumped by 7.3% to £314.2m, up from £292.9m the previous year.
However, pre-tax profit fell 10.2% to £4.39m, while profit after tax dropped almost 26% to £3.06m, with bosses blaming rising costs, higher finance charges and increased taxation.
Gross profit rose 4.1% to £51.6m, although operating profit slipped to £5.68m from £5.90m as administrative expenses climbed to £45.9m. The firm’s tax bill jumped from £754,000 to £1.33m.
New car sales were strong for the business, rising 49% thanks to ‘improved manufacturer supply’ and ‘sustained customer demand’.
Used car sales also rose by 6%, while aftersales turnover increased by 4%.
Vehicle stock increased significantly, with inventories rising from £60.7m to £69.2m.
During the year, Drive Motor Retail expanded its operations after acquiring Marshall of Ipswich Limited adding a Peugeot franchise in Hartlepool and progressing redevelopment work at its Darlington dealership.
Commenting on the 12-month accounts, director Richard Manning said: ‘The year was marked by economic uncertainty, high interest rates, shifting consumer confidence and the transition to electrification under the government’s Zero Emission Vehicle mandate.
‘Despite these challenges, the group outperformed many peers through strong operational discipline, prudent financial management and a diversified franchise portfolio.’
Drive Motor Retail operates franchises with Stellantis, Hyundai and MG, with dealerships in the north east, south west, East Midlands, Yorkshire and the Humber, Hampshire and Suffolk areas.