8:50 am, July 15, 2022
Dealer group Citygate saw pre-tax profits rocket by 176 per cent last year.
Accounts filed with Companies House this week for the period ending December 31, 2021 show profit before tax soared by £6m to £9.4m last year.
Turnover rose from £262.3m in 2020 to £336.3m in 2021 – an increase of £74m.
Gross profit on vehicle sales improved but 29 per cent, while aftersales profitability rose by 10 per cent.
Directors paid themselves £4m in dividends during the year, up significantly from the £990,000 the year before.
Government grants, meanwhile, totalled £901,927 during the period, down from the £2.47m the business was given during 2020.
Citygate has 16 franchise points across West London and the Home Counties, and represents Volkswagen, Skoda, Seat, Kia and Volkswagen Commercial Vehicles.
‘The directors consider the 2021 result to be satisfactory and reflective of the overall market conditions,’ said the firm.
Looking ahead, it added: ‘The balance sheet is strong, cashflow is tightly controlled and the group has sufficient liquidity to survive the current challenges.
‘The board of directors are confident in the Citygate business model and are ready to support further expansion when acquisition opportunities of a good strategic fit materialise in our core territory.’
