9:27 am, February 28, 2024
Hedin Mobility Group saw pre-tax profits slide by over 55% in 2023 as it was weighted down by major business expansion in Europe, including the UK where it acquired two large dealer groups.
The Sweden-based company netted an SEK 55m (£4.2m) loss in the fourth quarter of 2023, compared to an SEK 576m (£43.9m) profit compared to the same period in 2022.
However, for the whole of 2023 (between January and December 2023), it finished with an SEK 880m (£67.2m) profit.
That figure was down by over 55% on 2022’s SEK 2.19bn (£167.2m) pre-tax profit.
Comprehensive income for 2023 came to SEK 560m (£42.7m) from 2022’s SEK 2.12bn (£161m).
The figures were dented by Hedin’s continued expansion in Europe.
During 2023, it acquired a number of businesses in Belgium, Germany, Switzerland, Finland, the Netherlands and in its home market of Sweden.
Hedin also snapped up four dealerships – Brooklands, Dartford, Croydon and West Bromley – in South London from Mercedes-Benz Retail Group UK in April 2023.
In July it bought BMW and Mini dealer Stephen James Group, while in November it acquired wheel refurbishment specialist Luton-based RRT (UK) Ltd.
Last year also saw serious manoeuvres to acquire Pendragon, but it was thwarted by rival and eventual winner Lithia to the prize.
Earlier this month, Hedin Mobility Group announced it has sold its entire 385m shares in Pendragon between November last year and February 2024.
The 2023 results showed that its shareholding of Pendragon, Hedin’s net proceeds for the investment amounted to approximately SEK 1,69bn (£128.9m), generating a total profit during the ownership period of approximately SEK 700m (£53.4m).
The company has already started 2024 in a bold fashion by announced it and Ford Motor Company have entered into a non-binding memorandum of understanding regarding the acquisition of Ford’s national sales company in Finland.
Commenting on the 2023 results, CEO Anders Hedin said: ‘We have now established ourselves in the strategically important markets we intended to enter and will now focus on consolidating companies and markets to take advantage of economies of scale within our various businesses, build a unified group, and strengthen our position as a leading mobility provider in the European market.’
