8:21 am, June 8, 2023
Shareholders in family-owned Welsh car dealer Day’s Motor Group enjoyed a bumper dividend of £2.95m last year after clocking up a whopping £32.7m of pre tax profit.
Accounts for parent company C.E.M. Day Limited revealed the franchise dealer group – which represents the likes of Ford, Peugeot, Fiat and Ineos – turned over £257m in 2022.
Despite a fall in revenue from £263m the previous year, profit soared from the £23.7m earned in 2021.
As a result, the company declared a second £10m dividend in a row, following a similar amount paid out to the holding company the previous year.
This resulted in shareholders receiving dividends for 2022 of £2.95m, an increase on the £2.7m they received the year before.
Day’s Motor Group can trace its roots back nearly 100 years and has showrooms in Swansea, Bridgend and Cardiff in Wales, as well as Bristol, Exeter and Shrewsbury in England.
The firm trades from 18 sites, including its successful Day’s Motorpark used car showrooms, employs 600 staff and says it is one of the largest ‘Welsh based dealers’.
In its annual accounts, just published at Companies House, the parent firm explained that despite revenue attributable to car sales and aftersales falling 11 per cent during the year, it still managed to maintain a ‘reasonably consistent’ profit margin.
The firm said: ‘In a very difficult new car market, the group enjoys a number of competitive advantages, including strong brand recognition in its heartland trading region and high market share of the vehicle franchises it represents, with Ford in particular continuing to achieve the second largest market share in the UK.’
The firm also runs a fleet division which increased turnover 14.7 per cent in 2022, up £5.3m and its short term hire division increased revenues by £10m, or 25 per cent.
In total the fleet business brought in £40.9m during the year and the short term business £49.8m.
Looking ahead, the firm says it will keep its eye out for acquisition opportunities.
It added: ‘The group continues to be in a strong position financially, capable of funding further acquisitions should such opportunities arise.’
First published: June 8, 08:21; Updated June 8, 13:49: With clarification on the payment of dividends to holding company and to shareholders
