7:06 am, October 29, 2023
Profit halved at franchised car dealer Gravells in 2022 according to its latest accounts, despite increased turnover from a smaller number of cars sold.
The group, which represents Kia, Renault and Dacia in Wales and Herefordshire, saw profits fall from £4.9m in 2021 to £2.45m in 2022.
However, in its accounts published on the Companies House website, the group revealed that it had increased revenues by more than £10m in the year ending December 31, 2022, rising to £107.4m from £96.3m in the previous 12 months.
Gross profit was £8.5m, which was up from £7.6m in 2021 and remaining at 7.9% as seen in the previous year.
The total number of cars sold by the dealership dropped by 538 versus the previous year to 6,105 units.
However, turnover for used and new vehicles grew during the 12-month period. Gravells reported that used vehicle turnover was up by £5.3m to £48.6m and new vehicle sales were up by £4.2m t0 £46.3m.
In the accounts, the directors wrote: ‘The principal risk facing the company is the strength of the UK economy and following from that the demand for its products.
‘The company has maintained positive growth during the last 12 months, considering the Covid and Brexit impact, through its ability to offer innovative and value-added products and services to its new and existing customer base while maintaining a high standard of service.
‘The company continues to invest in its underlying systems and constantly seeks to identify opportunities for growth.’
They added: ‘The company’s performance is heavily influenced by the fortunes of the franchises it represents.
‘Given the longstanding and successful relationship the company enjoys with each of its core franchises, it is considered that such risks have, to a large extent, been mitigated.’
Gravells is believed to be the oldest Renault franchisee in the UK, first setting up a showroom with the brand in Kidwelly in 1954.
Car Dealer reveals the most profitable dealers in its Top 100 list every year. The 2023 list will be published soon.
Image credit: Gravells Kidwelly/Google Maps
