7:13 am, June 11, 2023
Ancaster Group saw its pre-tax profit dip by 13 per cent last year in spite of turnover going up by almost a quarter.
In newly published accounts, the Car Dealer Top 100 firm said it made £3.102m before tax for the year ended December 31, 2022 versus £3.562m the year before.
Operating profit went down from £3.989m to £3.69m – a drop of 7.5 per cent – and gross margin dipped from 17.3 per cent to 16 per cent, while EBITDA fell from £4.94m to £4.74m, which equated to a four per cent fall.
But over the same period, its turnover went up from £145.691m to £179.283m – a rise of 23 per cent.
It received £229,081 in government grants during the year – down from £585,800 the year before.
The average monthly number of employees rose from 315 to 354.
Despite the fall in profit, Ancaster said in the accompanying report signed on the board’s behalf by director Stephen Wood that it had ‘performed well’, adding that the directors were ‘pleased’ with how it had performed.
They said: ‘The success of the business is reliant on consumer spending.
‘An economic downturn, resulting in a reduction in consumer spending power, will have a direct impact on the income achieved by the group and costs will need to be reduced to match the fall in demand.
‘In response to this risk, senior management keep abreast of economic conditions.
‘In cases of severe economic downturn, marketing and pricing strategies are modified to reflect market conditions. Current inflation rates and the cost of fuel may drive costs higher.’
The directors added: ‘The motor retail market in which the group operates is highly competitive.
‘As a result, there is a constant downwards pressure on margins and the additional risk of being unable to meet customers’ expectations.
‘Policies of constant price monitoring and continuing to focus on our high level of service are in place to mitigate such risks.’
New and used car group Ancaster boasts 14 dealerships representing brands including Nissan, Renault and Hyundai plus a trade parts warehouse, covering Berkshire, south and west London, Surrey and Kent.
The MG brand was added to its portfolio last year, and trading from two dealerships in Bromley and Dartford started on January 1, 2023. The Dacia brand was also added in Dartford in May 2023.
Ancaster said it continued to invest during the year by adding the Distrigo franchise to its trade parts operation.
It also began negotiations to buy the freehold of its Heathrow dealership in September 2022, with the transaction completing in March, which Ancaster said would secure the dealership’s long-term future.
Pictured via Google Street View is Ancaster’s Nissan dealership in Slough
