7:50 am, August 29, 2025
Bosses at Sandown Motors say the firm enjoyed a ‘satisfactory’ year in 2024, despite it becoming the latest dealer group to report a dip in profits.
Accounts recently filed via Companies House show that the premium retailer made a pre-tax profit of £1.75m in the year ending December 31, 2024.
That figure is 21% down on the previous year’s £2.23m, with directors admitting to challenges with ‘rising inflation and wage growth’.
EBITDA – the means by which the Car Dealer Top 100 is measured – also fell from £6.95m to £6.42m, as turnover dipped by 4.1% to £168.17m.
However, despite the difficulties, the accounts do show plenty of reasons to be cheerful for the car dealer
The year saw the firm’s gross margins rise to 24.1% from 22.9% and bosses say that volumes also grew, in what was the second year of Mercedes’ agency model.
Sandown currently operates franchise sites for the brand in nine locations across the south of England, as well as also representing Smart in four.
Reflecting on the year as a whole, director Gavin McAllister said: ‘The 2024 result shows continued profitability in what was a challenging year for the motor industry with rising inflation and wage growth.
‘However, despite these challenges the group benefited from improved vehicle volumes in the second year of the agency commission-based structure and resilient service and parts performance throughout the year.
‘The overall gross profit margin has increased from 23% to 24% and return on sales continued to be above 1%.
‘The directors continue to focus on cost control in all areas of the business. It is the directors’ policy to continue to support the goals and aspirations of its franchise partners with whom the group continues to have an extremely good working relationship.
‘The directors are confident that the business is well placed to manage any further opportunities and challenges ahead.
‘The results for the year and the financial position at the year end were considered satisfactory by the directors.’
Throughout 2024, staff costs – cited as a significant challenge by McAllister – rose by 3.2% to £23.74m. At the same time, directors’ remunerations dipped to £860,000, compared to £864,000 in 2023.
The directors also did not recommend the payment of a dividend.
