10:13 am, August 24, 2023
Dealer group Johnsons Cars has posted a record profit for 2022, thanks to raking in higher margins on sales of new and used cars.
Latest accounts filed with Companies House show the Worcestershire-based firm finished the year with a pre-tax profit of £12.9m – over £2m more than the year before, setting a new record.
Turnover rocketed by over 28 per cent from £629.1m to £808.2m.
Johnsons said the record profit was thanks to ‘enhanced’ margins on new and used car sales, but with volumes returning to more normal levels in 2023, it expects margins to ‘come off their peak and reduce over the coming months’.
The company acquired Trust Group UK Limited in February 2022 for £11.6m, which included three VW and three Skoda dealerships, along with three trade parts operations.
In May 2022, it also purchased a Ford showroom in Tamworth, taking Johnsons’ Ford portfolio to two sites and the acquisition also added a Transit franchise to its operations.
Johnsons currently represents Abarth, Alfa Romeo, Cupra, Ford, Honda, Hyundai, Jeep, Lexus, Mazda, Seat, Skoda, Suzuki, Toyota, VW and Volvo, along with Fiat Professional and Ford Pro.
This week, Car Dealer reported Johnsons intends to close its multi-franchise Alfa Romeo, Jeep, Fiat and Abarth showroom in Dorridge, West Midlands, due to Stellantis wanting separate facilities for each brand.
Looking ahead to the next financial year, Johnson said it will continue to expand.
Director Richard Martin said: ‘We will continue our expansion over the coming months and years and have already identified several target companies and businesses we wish to represent that compliment our portfolio of franchises and geographical areas of influence.
‘The move to an agency model is being considered by several of our manufacturer partners and though uncertainty exists to what this will result in or how it will be arrived at, we do have confidence in well considered decisions which will result in a profitable future for the motor trade as whole.’
