12:08 pm, October 21, 2024
Williams Motor Group enjoyed the third most profitable year in its history in 2023 but the performance was not enough to prevent profits from sliding.
Accounts, newly published via Companies House, show that the Car Dealer Top 100 outfit made a pre-tax profit of £13.5m in the 12 months to the end of December 2023.
That figure is 15.6% down on the group’s record-breaking result in 2022, when it made a whopping £16m, but bosses insist they are ‘delighted’ with a ‘strong trading performance.
Similar to several other dealer groups, Williams’ turnover rose in 2023, with income increasing by 1.4% from £536.3m to £543.9m.
Despite this, the company’s EBITDA figure – the measure by which the Car Dealer Top 100 is judged – fell by 6.2% to £18.3m.
Directors say that the firm has performed well in the face of ‘economic headwinds’, including high interest rates and rising energy costs.
Writing in the accounts, boss Guy Adams said: ”The directors are delighted to report the group’s strong trading performance during 2023, being the third most profitable year in our history, despite the significant headwinds of supply disruption, increased energy costs and more recently double-digit inflation and rising interest rates.
‘The company is committed to providing customers with an excellent omni-channel experience, both online and in our dealership facilities.’
Results season so far…
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- 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
- Chorley Group posts record turnover but swings to £983k pre-tax loss in 2023
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- Johnsons Cars sees profits fall as bosses admit challenges with EVs and agency sales
- Profits fall at William Morgan Group as BMW specialist sells fewer cars in ‘robust’ year
Williams, which was established in 1909 as a family-run firm, has dealerships in Bolton, Liverpool, Manchester, Rochdale and Stockport, representing BMW, Mini, Jaguar and Land Rover, as well as a BMW Motorrad site and an approved used car centre.
Elsewhere, the accounts show that Williams Group ‘marginally’ increased its new car sales volumes, but was hampered by shrinking margins.
Overall, turnover from new vehicle sales rose by 6.2% to £225.7m, while revenue from used vehicles came in at £330.7m – a 2.5% drop.
The outfit’s net debt also fell to £30.7m, compared to £35.4m at the end of 2022.
When it came to staff, the outfit had an average workforce of 773 employees, with wages and salaries costing £29.5m.
The highest paid director received £808,000 throughout the year – a small rise compared to £805,000 in 2022.
Reacting to the results, Adams said: ‘Overall, our new car volumes increased very marginally during 2023, whilst margins for all brands declined throughout the year as vehicle inventories increased and the retail customer began to have concerns with BEV charging availability and range anxiety, resulting in reduced margins compared to last year as supply exceeded demand.
‘New vehicle turnover increased 6.2% to £225.7m and used car volumes were marginally lower than 2022, but as a direct consequence of improved new car availability used car gross margin fell by 21.4%. Used vehicle turnover reduced 2.5% to £330.7m.’
He added: ‘Profit before taxation reduced to £13.5m predominantly driven by a fall in new and used car margins, and consequently used direct profit fell 24.8%, whilst aftersales direct profit increased 11.8%.
‘The cost of vehicle funding has increased significantly compared to 2022, as the impact of both increased interest rates and the return of normalised consignment stock levels saw these costs increase 208%.
‘The company reduced net debt by £4.7m in the year to £30.7m. The company’s financial position remains strong with shareholder funds of £82.7m as at December 31, 2023.’
