8:22 am, January 6, 2026
Car dealer Mon Motors has announced a hefty pre-tax loss with bosses pointing the finger of blame at ‘challenging market conditions’ and a ‘significant mid-year acquisition’.
Accounts recently filed via Companies House show that MC 478 Limited – the ultimate holding company behind the dealer group – made a loss-before-tax of £3.96m in the 12 months to the end of 2024.
The figure represents a complete collapse on the previous year’s result, which saw the retailer post a pre-tax profit of £3.9m.
Directors say that ‘subdued’ consumer demand took its toll throughout the year, along with ‘downward pressure on margins’.
They also cited a deal to acquire seven Volkswagen Group dealerships from Heritage Automotive, completed in July 2024, as a major factor towards the loss.
The accounts reveal that the deal was ‘partly funded through new bank borrowings’, meaning that the company’s net debt increased to £34.11m.
Despite the difficulties, there were still plenty of reasons to be cheerful for the dealer group, with turnover rising 23% to £423m.
The Heritage Automotive acquisition also meant that Mon closed the year with current assets totalling £112.58m, compared to £71.24m at the end of 2023.
Reflecting on the period, director Gavin Cleverly said: ‘During the year ended 31 December 2024, the group reported a loss before tax of £3.96m (2023: profit of £3.90m.)
‘This reversal in performance primarily reflects a combination of challenging market conditions in the UK automotive retail sector and the impact of a significant mid-year acquisition.
‘The UK automotive market in 2024 experienced continued volatility, with supply chain disruptions easing but consumer demand remaining subdued, particularly in the retail segment.
‘While fleet and business registrations showed some resilience, the transition to electric vehicles and ongoing price competition, especially among new entrants and established brands, placed downward pressure on margins.
‘In July 2024, Mon Motors Limited, a subsidiary company, acquired the shares of Heritage Automotive Limited.’
He added: ‘The acquisition has now been fully integrated into the group, with core systems, operational processes, and compliance frameworks aligned to our broader automotive retail operations.
‘This integration enhances our regional presence and supports our long-term strategic objectives.
However, the turnaround of the acquired businesses particularly given the complexities of site-level performance and shifting market conditions – has required a more phased and hands-on approach than initially anticipated.
‘Accordingly, we expect their financial contribution to build progressively over the coming periods, with a continued focus on operational consistency, customer experience, and sustainable margin growth.’
Elsewhere, the accounts show that Mon Motors’ workforce swelled from an average of 697 employees in 2023 to 1,029 in 2024 – largely as a result of the Heritage Automotive deal.
That meant that staff costs rose from £25.14 to £33.1m, while directors’ remuneration shrunk from £610,871 to £492,415.
At the end of the year, ordinary dividends were paid amounting to £175,000 and the directors did not recommend any further payments.
