7:10 am, July 27, 2024
Brindley Group enjoyed a record turnover last year but that still didn’t stop its pre-tax profit from falling by nearly a quarter.
The West Midlands-based new and used car dealer chain said in its newly published accounts for the year ended November 30, 2023 that fleet sales went up from 3,218 units in 2022 to 4,005.
Meanwhile, new retail sales rose to 2,887 units from 2,379 and used retail sales went up from 4,433 units to 4,647.
That all equated to turnover increasing by 22% from £249.1m to £304.8m. However, profit before tax dropped from £6.03m to £4.56m – a fall of 24%.
In the strategic report accompanying the accounts – filed as W Brindley (Garages) Ltd – the Car Dealer Top 100 firm said: ‘A difficult final quarter impacted what would otherwise have been another stellar year for the group.
‘Despite this, the directors are pleased with the overall operational and financial performance, with unit sales increasing by 15%, generating a record turnover of £304m.’
It added that the fall in used car margins that came as 2023 drew to a close, along with increasing operational costs throughout the year, had contributed to the reduced pre-tax profit, which directors still labelled ‘satisfactory’.
Brindley represents Honda, Hyundai, Jaecoo, Kia, Mazda, Maxus, MG, Nissan, Omoda and V0lvo, and in the report it commented that during the year Volvo had moved to agency sales, making it the first of the group’s manufacturer partners to do so.
The company said: ‘This has created significant operating challenges for the business, but the group is committed to working closely with Volvo to navigate this new environment.’
It added: ‘The directors are excited about a new partnership with Chinese brands Omoda and Jaecoo, set to launch in July at the refurbished former Vauxhall site ni Cannock.’
Highlighting principal risks such as the UK economic outlook and the war in Ukraine as well as unrest in the Middle East, Brindley said its net assets of £42m gave it ‘the greatest comfort that the business has the resilience and experience to deal with whatever may occur in the future’.
Following its financial year end, it gave all staff a 4% pay rise to help them cope with the cost-of-living crisis.
The directors paid interim dividends of £83.33 per share, but they didn’t recommend payment of a final dividend.
Remuneration for the directors, meanwhile, rose by 25% from £849,123 to £1,062,120, with the highest-paid director receiving £207,393 – up 44% on 2022’s £144,476.
Pictured at top via Google Street View is the Brindley Volvo showroom in Wolverhampton
