6:23 am, May 19, 2024
New and used car dealership chain Greenhous Group saw its pre-tax profit go up by 50% last year to more than £26m.
The newly signed-off accounts for Greenhous Group (Holdings) Ltd – the trading holding company that includes all its subsidiaries – show that turnover for the year ended December 31, 2023 rose by a third from £1.118bn in 2022 to £1.494bn.
Profit before tax went up from £17.53m to £26.32m, with its total operating margin rising from 1.83% to 1.92%, although its gross margin dipped from 7.49% to 7.36%.
The Car Dealer Top 100 firm, which has the franchises for Omoda, Vauxhall, Nissan, Daf and VW Commercial Vehicles at sites in Shrewsbury, Telford, Bilston, Wolverhampton and Tamworth, said it shifted some 50,000 vehicles in all – up by approximately 30%.
In his accompanying report, executive chairman Derek Passant hailed Greenhous’s financial performance for the year as being ‘even more impressive than expected’.
He said: ‘Both turnover and profit exceeded what were considered to be tough budgets.
‘Improvements in new vehicle availability certainly helped, but the industry experienced some difficulties with the economic turmoil which continued throughout 2023.
‘Due to the dedication and hard work of our employees, we were able to navigate our way through the difficulties to produce an exceptional result.’
Buying and leasing more land allowed Greenhous, which is primarily a fleet motor dealer, to continue expanding its pre-delivery inspection and refurbishment offerings.
‘This has resulted in us being able to achieve the further objective of growing our customer base, which has increased our market share while at the same time improving our customers’ satisfaction with our service levels,’ he said.
Passant added: ‘Although we foresee some challenges ahead, it is our view that the actions we have taken in past years will enable us to continue to grow.
‘We have exciting plans for our Daf commercial operations with the addition of two further outlets in the south-west being completed in 2024.
‘We also see some opportunities in the car and van market, as new entrants mainly from China battle it out with the old established marques, particularly as the industry continues to drive down the road of electrification.
‘It is our belief that we are ideally placed to take advantage of the opportunities that arise.’
Passant also praised Greenhous staff, saying: ‘I would very much like to thank our employees, customers, suppliers and funders for their continued support of our business.
‘Our success is due to the collective efforts of all of our stakeholders, and we remain focused on delivering on all of our commitments.’
Meanwhile, the strategic report, which was signed on behalf of the board by director Ashley Passant, highlighted the group’s concerns over EV take-up, as well as the ZEV mandate.
It said: ‘Battery-electric vehicles recorded a record volume in the UK with close to 315,000 being registered, but…this was driven by fleet and business purchases which benefit from tax incentives, unlike private buyers who currently receive no incentives.
‘With the manufacturers having to increase their percentage of electric vehicle sales year on year, it is our opinion that they either have to convince government that they need to support the private buyer through a scheme such as a reduction in VAT, or they will have to provide bigger discounts themselves to encourage customers to turn away from petrol or diesel vehicles.’
It also highlighted the EV skills gap, saying: ‘Britain has a shortage of EV technicians, with only 11% of technicians possessing the requisite qualifications to safely handle EVs.
‘Projections from the Institute of the Motor Industry indicate a potential shortfall of 35,700 qualified technicians by 2030.
‘The skills gap not only poses safety risks for technicians but also undermines the confidence by which EVs can be serviced, maintained and repaired by a garage with the right skills.
‘As training is often delivered through OEM brands, technicians may only be qualified to service one car brand.
‘Failing to bridge this skills gap may not only affect our current market share but could also hinder our ability to expand into this new market.
‘If left unmitigated, this skills gap has the potential to affect our business model, as we would be unable to meet demand for both private vehicles and HGVs.’
A dividend of £3.50m was paid during the year versus £2.25m in 2022. The retained profit of £21,734,000 will be transferred to its reserves, it said.
The average number of employees rose from 1,307 to 1,473.
Greenhous Group (Holdings) Ltd is owned by Monkmoor Holdings Ltd. Subsidiaries of Greenhous Group (Holdings) include Greenhous Group, Adams Morey and Premier Motors (Solent).
Pictured at top is Greenhous’s site at Cold Meece, Stone (image copyright © Greenhous 2024)
