7:24 am, August 26, 2023
Profit at Jemca Car Group fell in the 12 months ending March 31, 2023, from £2.3m the previous year to £463,987.
The business commented on the challenging trading environment but added that the return to full property tax post-Covid, increased interest and higher utilities costs had also impacted profits.
It also commented on the reduction in new car supply and demand for EVs dropping in London played a part.
The annual report, posted to Companies House this week, shows that turnover remained close (£314m in 2023 compared to £318m in 2022) but costs on the business were higher.
It explained: ‘The directors have specifically moved to a focus on ‘Value Chain’ activities, looking to reduce the reliance on the new vehicle market, and our brands, as the uncertainty regarding the impact of government policies regarding volume targets for the sale of electric vehicles.
‘The key areas of focus will be on developing our used car opportunity and growing volumes through incremental sales of ‘non-franchise’ and ‘older’ used cars, together with driving customer retention and maximising the opportunity in the After Sales arena.’
Jemca Car Group revealed that new and used vehicle sales fell during the 12-month period. New vehicle units sold dropped from 7,888 to 7,628 and used vehicle units were down to 6,583 from 6,905.
Directors wrote in the companies strategic report: ‘Both the level of business and the year-end financial position reflect a challenging trading environment for the Company due to the lasting impact from Covid-19, which significantly impacted the supply chain, and seriously limited new car sales throughout the financial year.
‘The UK new passenger car market decreased by two per cent in the calendar year 2022, with total registrations of 1.61m vehicles. The fleet sector declined by 7.6 per cent, whilst the retail sector also witnessed a slight recovery from 2021, increasing by 3.4 per cent.
‘The company’s 2022 calendar year new vehicle sales was below the market due to the significant impact of reduced supply of new vehicles and the increased demand for “Full EV” cars in London decreasing by 9.2 per cent with our retail business negatively affected and below the UK market decreasing by 15.5 per cent.
‘However, our fleet business performed well, leading to a marginal increase of 4.1 per cent. The company’s fiscal year new vehicle retail sales decreased by 10.2 per cent, whilst the fleet sales increased by 11.2 per cent, reflecting an overall decrease in total new cars sales of 3.3 per cent.’
