1:23 pm, April 14, 2026
Losses deepened at car dealer group Norton Way last year as the business revealed it lost £5.7m before tax in its latest set of accounts.
This was more than double the loss reported by the group in 2024 of £2.1m and turnover in the 12 month period to March 31, 2025, also fell by 13.7% to £353,284.
Operating loss was £4m, up from £114,000 in the previous year.
During the accounting period, Norton Way closed two dealerships; its used car dealership ‘Carverse’ in August 2024 and its Wimbledon Park Honda site in September 2024.
Since then, it explained in the report, it has disposed of two more sites. This included its MG Chiswick franchise that closed June 2025 and Letchworth Honda, Mazda and Nissan dealerships that were disposed of in January 2026.
It explained that the the Letchworth disposals resulted in a £4.1m loss alone. However the resulting loss of 46 staff from these cutbacks across the group did result in a 9.1% reduction in employment costs.
It said: ‘A strategic review across the group during the year led to two site closures. As a result, new car sales volume fell during the year by 9.8%. Used car sales volume also reduced against prior year with a decrease of 14.1%. Overall retail sales turnover decreased by £20.9m (10.9%) as a result of the reduction in vehicle volumes.
‘Corporate sales volume increased by 23% on prior year but due to a change in sales mix, turnover fell by 16.3%.
‘Aftersales turnover decreased by 11.1% year. The site closures and resulting team restructuring were the two main factors driving this performance.’
It blamed ‘challenging market conditions’ for the worsening in its financial results, and also talked about the ZEV mandate and the impact its manufacturer partners are having on sales.
‘The supply of vehicles by each manufacturer also has a major influence on the profitability of each dealership – over supply generally leading to a reduction in margins, under supply leading to improved margins,’ it said.
The report adds: ‘The UK government introduced the new ZEV (Zero Emission Vehicle) Mandate from 1 January 2024. This new standard sets a target as a percentage of each vehicle manufacturer’s total annual sales that must be met each year to avoid making a compliance payment. The target percentage will increase each year to eventually transition to zero tailpipe emissions.
‘This new legislation will impact the volume of new vehicles registered in the UK by certain of our manufacturer partners as they attempt to mitigate and minimise any compliance payment.’
Norton Way is owned by Marubeni Auto Investment UK under Marubeni Corporation, who it says remain supportive of the company. The company has a ‘Group Cash Pooling Facility’ of up to £74.0m available, with £46.1m remaining undrawn at year end.
‘The directors have received a commitment from the Ultimate Parent undertaking, Marubeni Corporation, that they will continue to provide the group with financial support by way of the ‘Group Cash Pooling Facility’ so that the group meet its liabilities as up to March 31, 2027.’
The company paid no dividends during the period, compared to the £1.4m paid the previous year.
Picture credit: Norton Way Peugeot Letchworth Garden City/Google Maps
