11:42 am, January 2, 2024
Family-run Hawkins Motors has reported record sales but pre-tax profit slipped by nearly £2m.
Accounts filed for the year ended June 30, 2023, show turnover climbed to £108.6m – up from the £106.4m achieved the year prior and £89.6m in 2021.
Despite the increased revenues, pre-tax profit for the Car Dealer Top 100-rated firm fell from 2022’s £5.2m to £3.3m last year.
The pre-tax profit figure was slightly lower than the £3.4m the Cornwall-based business achieved in 2021.
Meanwhile, directors’ renumeration dropped from 2022’s £197,330 to £190,414.
Hawkins was founded in 1933 and holds new car and commercial vehicle franchises with Peugeot, Citroen, Hyundai, Kia, MG and Nissan, across Cornwall. It also runs two Mitsubishi Service Centres.
In the accounts, director William John Hawkins noted inflated used car values.
‘The company has achieved record sales during the previous 12 months, a trend that appears to be reflected in the motor trade in general,’ he said.
‘New vehicle stock has been more difficult to obtain, although for this reason demand for used vehicles in particular has skyrocketed and led to inflated used vehicle values.
‘This, coupled with a change in consumer spending first seen in the prior year of customers investing in vehicles instead of other luxuries, has led to improved margins.’
He added: ‘Looking forward, the company holds a significant order book for new vehicles and it appears stock availability will become less of an issue. Targets set by manufacturers are realistic and take this into account.
‘There has been a weakening of the economy in general which has led to lower demand for used vehicles and a return to baseline in their values. Obtaining new vehicle stock appears to be easing following a period of very long lead times and difficulty in obtaining parts.
‘The directors are pleased to still be in a strong position having no external borrowing and a well diversified selection of dealer franchises, although they continue to apply a more cautious approach to trading and investment for the foreseeable future.’
