8:19 am, December 8, 2022
Snows Motor Group saw its profits rise by more than 180 per cent to £7.56m last year, new accounts show.
Documents published via Companies House show that the Hampshire-based outfit enjoyed a stellar period in the 12 months to the end of December 2021.
The firm benefitted from sky-high used car prices, which allowed it to rake in record levels of turnover as well as profit.
The accounts show that Snows’ turnover rose by over £100m to £486.4m in 2021, compared to £372.8m in 2020.
While the majority of that increased revenue (£441.81m) was brought in by vehicles, a further £44.57m was raised by aftersales services.
The increased takings meant that profits also went through the roof for Snows. Overall, it made £7.56m before tax, opposed to £2.67m in the pandemic-hit 2020.
Return on sales (1.6 per cent) and gross margin (14.4 per cent) also rose in an impressive set of results for the group.
Despite the 2021 starting with national lockdowns, as the year wore on, the pandemic began to have less of an impact on businesses.
As a result, Snows significantly reduced the amount of furlough cash it claimed from the government.
Last year, the company received £811,439 from the government’s Coronavirus Job Retention Scheme compared to £4.96m in the 2020.
The period covered by the accounts also saw Snows grow its dealer network with the acquisition of Hamble Motors Limited in November 2021. The site became the firm’s sixth Peugeot dealership.
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Reacting to the results, bosses praised how the outfit had reacted to the pandemic.
A statement signed by boss Stephen Snow said: ‘The pandemic continued to have an impact on the business resulting in temporary closures of showrooms, new vehicle supply shortages and staff recruitment challenges.
‘In order to address these concerns the board increased used vehicles stocking levels to negate the impact of supply concerns to our customers and concluded a thorough review of our pay plans for both our technical and sales staff.’
‘The most immediate impact upon future profitability is the increased cost of interest which the board continue to be aware of and manage to ensure the said cost is mitigated without being to the detriment of the group’s operation,’ Snow added.
‘The group has continued to invest in its dealerships to ensure brand compliance.
‘The directors monitor these risks on a regular basis.
‘We continue to have a good relationship with our bankers and all of our franchisors.’
Main image: Stephen Snow (right) alongside Neil McCue, chief operating officer at Snows Motor Group
