7:07 am, August 11, 2023
Williams Group saw its pre-tax profit rise by almost a million pounds to just over £16m last year – making 2022 the company’s most profitable year.
Newly published accounts for the Car Dealer Top 100 firm show it made £16.016m for the year ended December 31, 2022 versus £15.120m in 2021 – a rise of six per cent.
That was on a turnover that went up by a similar percentage from £505.4m to £536.3m.
Gross profit, meanwhile, increased from £56.5m to £63.6m – up 13 per cent – and operating profit rose from £16.3m to £17.5m, which was a seven per cent upswing.
Ebitda went up by six per cent from £18.4m to £19.5m.
Williams, which was established in 1909 as a family-run firm, has dealerships in Bolton, Liverpool, Manchester, Rochdale and Stockport, representing BMW, Mini, Jaguar and Land Rover, as well as a BMW Motorrad site and an approved used car centre.
In the accompanying report, signed off by managing director Guy Adams, the company said the rise in pre-tax profit was mainly driven by new car volumes and margin.
That in turn led to an 18.4 per cent increase in net assets to £74.8m.
It highlighted pent-up demand combined with a restricted supply of new cars pushing people towards buying a used car to avoid extended lead times.
As such, used vehicle turnover rose by 7.6 per cent from £315.4m to £339.3m.
The report said: ‘The directors are delighted to report the group’s strong trading performance during 2022, being the single most profitable year in our history, despite the significant headwinds of supply disruption, increased energy costs and, more recently, double-digit inflation and rising interest rates.’
It flew the flag for the physical dealership, too, by adding: ‘As we continue to develop our digital capability, it remains clear that a significant proportion of our customers want to physically visit our retail centres to view and test-drive vehicles and ultimately receive the full brand experience, supporting the continued investment in physical infrastructure.’
Nevertheless, the directors acknowledge that change lies ahead as Williams’ manufacturer partners have said they’ll probably be moving to the agency model over the next few years.
The report said: ‘The company is engaging with its manufacturer partners to assist, shape and manage the transition to this new commercial arrangement, which the board believes will continue to provide a productive and profitable commercial relationship between the manufacturer and the retailer.’
Pictured via Google Street View is Williams’ Mini showroom in Liverpool
