11:47 am, May 17, 2023
Dealer Group Cars 2 saw its profits rise last year despite ongoing concerns about new car supply.
Documents published via Companies House show the Yorkshire-based retailer made an impressive pre-tax profit of £7.6m in the 12 months to the end of December 2022.
The figure represents a five per cent increase on the previous year’s results, which saw it make just over £7.2m.
The achievement was made possible by a major surge in turnover, which rose from £124.2m in 2021 to £168m in the most recent financial year.
The vast majority of that income – £157.8m – came from sales, with commissions bringing in £4.65m.
Elsewhere, gross margin remained strong at 8.6 per cent and return on sales stayed above industry levels at 4.5 per cent.
Responding to the results, bosses said they were pleased with the year’s work and backed the outfit to enjoy an even stronger period in 2023.
They also confirmed talks remain ongoing with potential new brands and plans are in place for a new centre to open later this year.
The firm currently represents the likes of Dacia, Renault, Hyundai, Abarth, Fiat, Seat and Nissan and has a prestige dealership which trades under the name Pure Cars.
In a statement included in the accounts, director Allan Otley said: ‘The trading year to December 31, 2022 continued to have challenges due to restricted new car supply as a result of the continued global semiconductor shortages.
‘Despite this, Cars 2 delivered revenue growth of 35 per cent and profit growth of over five per cent due to focus on cost-control strategies in a cost inflationary marketplace.
‘The group continues to see consumers more prepared to transact on our remote sales platform and overall face to face footfall numbers have continued to rise remain in excess of pre pandemic levels.’
He added: ‘The continued growth and cash position further consolidates the group’s position of being well placed to move quickly when further growth opportunities become available.
‘Cars 2 remains in a strong position both operationally and financially to continue to expand group operations and are actively negotiating with potential new car brand partners.
‘Cars 2 will also open a dedicated PDi, direct purchase and remarketing centre to feed group retail sites and drive efficiency to reduce preparation time from on-site to ready-for-sale.’
The accounts made no mention of talks of a takeover deal with Arnold Clark, which fell through late last year.
