11:26 am, August 31, 2023
Dealer group Parkway saw its pre-tax profit slump by more than a fifth last year to under £6m.
The results, newly published on the Companies House website, show that turnover for the year ended November 30, 2022 rose by 15.3 per cent from £160.115m to £184.57m.
However, profit before tax slid by 20.8 per cent from £7.296m to £5.778m.
Meanwhile, the net profit percentage figure dropped by 1.5 percentage points from 4.6 per cent to 3.1 per cent, while Ebitda fell by 16.5 per cent from £8.55m to £7.14m
It followed spectacular results for 2021 and 2020 by the new and used Volkswagen dealership chain, when pre-tax profit rose by 109 per cent and 221 per cent respectively.
The company, which has sites in Derby, Leicester, Northampton and Kettering, ranked 54th in our Car Dealer Top 100 list of top-performing dealers last year, rising from 89th position.
Rising utility costs and financing costs last year were blamed for making things difficult as regards maintaining net profit performance.
But although vehicle supply improved after earlier issues, consumer confidence was hit in the last quarter because of the cost-of-living crisis, which it said had a knock-on effect on demand and margins.
It also found aftersales ‘challenging’ because of the nationwide shortage of vehicle technicians. As a result, Parkway said it would be taking on more apprentices each year.
The group strategic report, signed on behalf of the board by director Sean Booth, said Brexit had affected the local economy but the company continued ‘to generate strong turnover and is profitable’.
That was in spite of what it called ‘the adverse publicity surrounding Volkswagen’ – namely, dieselgate – ‘as well as the aggressive marketing from other retailers’.
Nevertheless, the directors hailed the financial year as ‘another exceptional one despite the unprecedented headwinds’, saying the company had ‘remained resilient’.
Pictured at top via Google Street View is Parkway’s dealership in Kettering
