8:05 am, August 19, 2026
Bosses at dealer group Gates say they are ‘pleased’ with the firm’s ‘robust’ performance in 2025, despite profits dropping for the fourth year in a row.
Accounts recently filed via Companies House show that Frank G. Gates Limited made a pre-tax profit of £2.28m in the 12 months to the end of December.
The result was down 25% on 2024’s £3.05m and the retailer’s profit-before-tax has now fallen in every year since 2021.
Despite this, directors were in a positive mood, with the car dealer ‘exceeding internal expectations’ amid ‘persistent and heightened geopolitical hostilities, global economic volatility and an ongoing international energy crisis’.
Elsewhere, the accounts show that revenue increased by 13% to £220.08m, compared to £195.16m in 2024, with gross profit margins maintained at 13%.
Meanwhile new cars sales volumes were up a whopping 55% on the previous year, despite a 4% slump when it came to used cars.
Reacting to the figures in the accounts, director Heath Greenhall said: ‘The board of directors are pleased to report a robust financial performance for the year, delivered during a highly challenging period for the UK automotive industry, amid persistent and heightened geopolitical hostilities, global economic volatility and an ongoing international energy crisis.
‘Company results exceeded internal expectations and were stronger than many of our industry peers, who generally reported more subdued performance and results.
‘The UK economy experienced slowing growth, obstinate inflation, mounting fiscal pressures and a loosening labour market.
‘These conditions had a mixed and significant impact on the automotive sector, as consumer confidence weakened, directly affecting high-value discretionary purchases, particularly ahead of the Autumn Budget 2025 and ambiguity over anticipated changes to tax policy and EV regulations.
‘Whilst new EV car sales grew rapidly, gross margins were compressed by constrained ICE supply as manufacturers prioritised electrification.
‘Dealer profitability was further affected by rising employment costs and broader cost pressures, including stocking interest, premises costs and EV investment in training and charging infrastructure.
‘Overall company performance for 2025 was positive, particularly in the context of these headwinds.’
‘A year of momentous change’
The year also saw Gates make significant changes to the make-up of its dealer network, which previously consisted only of Ford sites.
In the Car Dealer Top 100 firm’s 2024 accounts, bosses said that the Blue Oval’s decision to ‘prioritise the stimulation of BEV sales volume over ICE vehicles’ had led to fewer new car sales.
In 2025, the firm took a number of steps to offset the brand’s ‘declining market share and diminishing long-term vehicle parc’ by taking on a number of new Chinese franchises.
The group finalised partnerships with BYD, Omoda and Jaecoo throughout 2025, with Leapmotor and Geely joining in the early months of 2026.
It is now hoped the new ‘multi-brand strategy’ will help increase profitability for Gates over the coming years.
Greenhall added: In response to concerns over Ford’s strategic direction, declining market share and diminishing long-term vehicle parc, alongside recent operational challenges arising from vehicle recalls and parts supply issues, the directors took action to mitigate the risks associated with reliance on a single manufacturer, while seeking to drive sales volumes and margins to offset the increased cost base.
‘2025 was a year of momentous change for the company, as we finalised partnerships with BYD and Chery (Omoda and Jaecoo brands) and invested in the infrastructure required to introduce their class-leading products into four of our dealerships, thereby complementing the Ford range and enhancing overall product offering and customer choice.
‘This diversification strategy continued during the year, with the completion of the acquisition of freehold property in Braintree, operating as a Peugeot dealership, via an asset purchase. Leapmotor and Geely brands have also been successfully launched into two existing dealerships in early 2026, further strengthening the multi-brand strategy.’
What else is in the accounts?
Throughout the year, Gates increased its workforce to an average of 306 employees, compared to 301 in 2024.
The rise in headcount came as the group expanded its franchise portfolio, contributing to a 7.4% rise in staffing costs to £17.18m.
Directors’ remuneration also increased slightly from £1.52m to £1.56m, with the highest paid director pocketing £443,874.
Throughout the year, Gates paid £1.52m in ordinary dividends, down from £2.23m in 2024 and no final dividend was recommended.