9:11 am, October 10, 2024
Directors at Chorley Group have expressed ‘disappointment’ at the firm’s £983,000 pre-tax loss it made in 2023 despite it clocking up a record turnover, but have promised a return to profitability in 2024 as their long term business plan kicks up a gear.
Latest accounts filed under Bugle Inn Motor Company show earnings swung dramatically to the red for the year ended December 31, 2023. Twelve months earlier, the business – which trades as Chorley Group – posted a pre-tax profit of £2.02m in 2022.
Despite a strong first half of the year, the family-run firm experienced negative headwinds like many motor trade businesses, such as falling used car values and interest rates.
Summarising the year, managing director Adam Turner said: ‘The final trading result in 2023 was subject to a multitude of external challenges which the directors are pleased the company managed to successfully navigate, however, the board were disappointed with the final result driven by a challenging second half of the year.
‘After a buoyant first half of the year, the company was well placed to perform in line with the company’s realigned expectations. The final stage of the company’s centralised functions plan was successfully executed and the directors continued to execute the company’s multi-brand expansion plans.’
He added: ‘The second half of 2023 brought about a number of challenges driven by mainly external factors, the rapid decline in electric vehicle prices, the total decline in the used sector and the rise in cost base driven by the company’s exposure to interest rate changes were all significant contributors to a disappointing financial performance in the second half of the year, despite a welcome increase in turnover.’
Turnover for the year rose by a substantial 17.1% or £41.2m, from £240.2m to £281.4m. Moreover, it was the highest revenue for a calendar year in the firm’s 34-year history.
Turner remarked that the company’s board was particularly pleased with the increase in turnover, especially as two dealerships were closed and another two began ‘significant disruptive’ works.
During the year, the business disposed of land and buildings in respect of its Skelmersdale site, resulting in a profit of disposal of £464,000 which was represented in its operating profit of £421,000 – an 83.4% change on 2022’s £2.5m operating profit figure.
Results season so far…
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- John Clark Motor Group breaks £1bn turnover barrier but pre-tax profit sinks by almost 10%
- Hartwell bosses happy with ‘strong financial performance’ despite 70% slump in profits
- Holdcroft directors award themselves 345% pay rise as profit takes a tumble
- Vines Motor Group sees profits slump as bosses blame wider economic factors
- Car dealer group Parkway is the latest retailer to see profits wiped out as firm takes 75% hit
- Lloyd Motor Group’s annual pre-tax profit falls despite upturn in revenue
- Family-run Masters of Beckenham admits ‘concerns’ about Kia relationship as profits tumble
- Glyn Hopkin sees profits slump in ‘challenging’ 30th anniversary year for the dealer group
- Available Car losses hit £10.8m following another challenging year for the used car dealership
- Amari Supercars sees profits dip as income from luxury vehicle sales takes a slide
- Big Motoring World posts slashed profits in last full year under the control of Peter Waddell
Looking ahead, Turner stated the directors expect the business to return to profitability in 2024 as they action their long-term plan.
He said: ‘The board remain confident in the company’s ability to executive their long term “Automotive Destinations plan” and return the company to profit upon completion of the extensive redevelopment plans in mid-late 2024, when physical disruption to the locations becomes limited.’
Chorley Group has dealerships across Lancashire and Greater Manchester, and has franchises with Nissan, Hyundai, Kia, MG, Isuzu and GWM Ora, along with Stellantis brands Peugeot, Citroen and Vauxhall.
