7:30 am, October 9, 2024
Amari Supercars saw its profits take a slight dip last year amid a fall in income from the sale of luxury vehicles.
Accounts published via Companies House show that the high-end retailer made a pre-tax profit of £1.67m in the 12 months to December 31, 2023.
The figure is 15% down on 2022’s profit before tax figure of £1.97m, which was itself well down on 2021, when the firm made £2.45m.
Turnover also took a small hit compared to last year’s accounts, with Amari raking in £31.44m compared to £31.97m last time out.
In the accounts, boss Saba Syed admitted that takings from motor vehicle sales fell from £31.61m to £30.68m.
Profit margin for the year also declined to 6.87%, from 7.46%, following a wider trend across the automotive industry, which saw margins fall across the board last year.
Car Dealer recently published a special feature on just why it is that dealers are not making as much money as they once were, with several experts pointing to shrinking margins as a major factor.
When it came to staff numbers, 2023 saw Amari bulk up its workforce from 11 to 14, with wages and salaries totalling £270,114.
Despite the falls in profit and turnover, directors remunerations rose by 26% to £11,908.
Reacting to the results, Syed said: ‘The company ethos is simple, Amari Lifestyle Limited, trading as Amari Supercars, buy the best cars and sell them to the best buyers utilising years of experience which allow us to offer only the exceptional examples.
‘The business model is unique in that the company aim to buy its stock unlike competitors who predominantly sale or return vehicles.
‘The demand for cars is greater than ever, this is where the company demonstrates its strength and buying power over other dealerships who do not have the wealth of knowledge or experience that is offered at Amari Super cars coupled with excellent buying power not reliant on external funding.’
She added: ‘Motor vehicle sales have reduced from £31.61m to £30.68m, as compared to previous year and the operating profit margin during the year is 6.87%.
‘This demonstrates that whilst the company is positively growing it is not at the expense of forfeiting profit.
‘The company also utilises internal reporting capturing trends and profit margins of specific marques and models, each unit of stock is monitored by cost reports which allow informed decisions to be made about stock levels of each model.’
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Amari Supercars bosses Sheikh Amari and Syed previously spoke to Car Dealer for our Selling Supercars video series. You can watch the video at the top of this story.
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