8:43 am, January 8, 2025
Peter Vardy Group has announced losses of more than £10m, following ‘the most significant year of transformation’ in the group’s history.
Accounts filed via Companies House show that Peter Vardy Holdings Ltd made a pre-tax loss of £10.93m in the 12 months to the end of December 2023.
The figure marks a drastic fall on the previous year, when the group made a profit of £4.8m, with bosses pointing to pricey strategic decisions as a major reason for the decline.
The period saw the firm axe its Peter Vardy Carz used car supermarket sites as part of a drive to ‘support long-term sustainable growth’.
Other strategic changes included incorporating its CarMoney motor finance business into the overall Peter Vardy Holdings Group in order to ‘remain agile and efficient’.
The accounts do not cover all of the changes to the group’s dealer network, with some – including the sale of sites to to Parks Automotive Group and Arnold Clark – taking place in 2024.
The network now consists of two Porsche Centres after the firm decided to part with volume brands, including MG.
Elsewhere, the accounts show that turnover was also down in 2023, dropping from £590.51m to £551.32m – a decline of around 6.6%.
Reflecting on a year of change, CEO Peter Vardy said in the accounts: ‘2023 marked the most significant year of strategic transformation in the Peter Vardy Group’s history.
‘As we look ahead to a rapidly evolving automotive landscape, the group has made pivotal changes to align with market trends and prepare for the challenges of the next five years.
‘This year’s decisions, particularly in reshaping our motor group and diversifying into new ventures, have laid the groundwork for future growth despite short-term costs.’
‘The most visible shift this year has been our strategic divestment from the used car supermarket format, instead focusing solely on luxury brands,’ he added.
‘Careful research and data analysis identified a growing trend of an affluent consumer base in the UK that continues to demand premium products.
‘This along with our continued growth and profitability in our Porsche, BMW, Mini, Jaguar and Land Rover businesses clearly signposts the direction for the group’s future growth aspirations.
‘In parallel, the decision to divest from our used car supermarket division was driven by external market conditions.
‘A shrinking pool of sub-5-year-old used cars, down by approximately three million vehicles (due to car production stops in Covid), severely impacted the nearly new stock that forms the backbone of used car supermarkets.
‘This strategic divestment, although challenging at a cost of £15m in terms of trading down across the year and one-off closure costs, was in line with activities taken by similar motor groups in the UK.
‘Having accepted short-term costs, we have positioned the group to clear the path for future innovation, creating a “war chest” for seizing new opportunities that will drive long-term growth.’
Vardy looks out for ‘remarkable’ staff amid struggles
The accounts show that money brought in from the sale of goods – namely new and used cars – fell from £580.58m to £539.65m in 2023.
The rest of the group’s turnover mostly came from the rendering of services, which raised £9.73m, while ‘other income’ amounted to £1.93m.
When it came to staff, the average size of the group’s workforce fell from 1,008 to 841, with wages and salaries dropping to £37.63m compared to £34.07m last time out.
The group also agreed to pay a one off ‘cost of living bonus’ to all employees in order to help them through that crisis. The payment ended up costing the firm £960,000 and was paid in full by March of 2023.
Elsewhere, directors’ remunerations rose from 485,000 to £499,000 and no ordinary dividends were paid throughout the year.
The firm ended the year with an increased £100.3m in net assets and bosses say that the despite the difficulties, the firm now stands better prepared for the future.
‘As we reflect on a year of significant change, it is clear that the foundation laid in 2023 will support long-term, sustainable growth across all areas of the business,’ said Vardy.
‘The strategic decisions made this year-though not without cost-have allowed us to realign the group’s focus on high-growth opportunities, both in the luxury automotive sector and through our innovative new ventures.
‘In the motor division, we are now focused on building stronger, more profitable relationships with our luxury brand partners while maintaining the operational flexibility to scale our newer ventures, FlexAuto and CarMoney.
‘Meanwhile, our investments in technology and international expansion ensure that the Peter Vardy Group remains at the forefront of industry disruption.
‘We entered 2024 with a strong balance sheet, a clear strategic direction, and the confidence that our decisions today will drive the group’s success for years to come.’
Paying tribute to the group’s workforce, he added: ‘I want to express my heartfelt gratitude to all our colleagues, partners, and guests for their unwavering support throughout this transformative year.
‘A special acknowledgment goes to the remarkable colleagues who have moved on from the company on good terms.
‘It is inspiring to see so many of them thriving in excellent roles at outstanding organisations.
‘As a group, we remain committed to progress-embracing new opportunities and steadfastly working toward becoming a world-class automotive organisation, recognised and valued by our colleagues, guests, and the communities we serve.
‘Our purpose is clear: to sell to give. Our future is filed with promise and opportunity.’
