Dealer group Sherwoods saw turnover soar last year, but profits tumbled by 42 per cent.
The Tyne and Wear-based business – which has franchises with Citroen, Peugeot, Suzuki, Isuzu and Maxus – has published its accounts for 2022, which show turnover jumped from £74.2m achieved the year before to £91.5m last year.
Gross profit rose to £10.1m – up from £7.5m in 2021.
Despite the uplifts, profit before tax slumped from the £1.38m made 12 months before to £804,092.
Directors were pleased with the performance, though, saying: ‘During 2022 the business traded very well despite the challenges of new car stock supply shortages, changes in Stellantis systems, the war in the Ukraine and the inflationary pressures of utilities and alike, as well as a general downturn in customer confidence and demand in the second half of the year.
‘Our success with the brands was rewarded with us winning Citroen awards for best medium sized dealer (Gateshead), best large dealer (Sunderland), best overall dealer (Gateshead) and one of our staff won sales person of the year.’
In January 2022, Sherwoods Motor Group acquired Sunderland-based Town Centre Garage for £692,486, and the accounts remarked the dealership ‘had a very successful first year of trading’.
Following the deal, the dealership’s name changed from Town Centre Garage Ltd to Sherwoods Town Centre.
Sherwoods also hinted its eyeing the possibility of further acquisitions despite tougher trading conditions in 2023.
‘We know 2023 is going to be tough with increased energy costs, borrowing costs and alike but we have a strong, well reforming business and a robust balance sheet and will be more than able to ride out any storms,’ the accounts said.
They added: ‘We also will be looking for further opportunities to grow our business should the opportunity arise.’