7:09 am, May 25, 2024
The Dick Lovett Group enjoyed a record year of trading last year that saw turnover top £800m for the first time – but its pre-tax profit fell to nearly half the previous year’s figure.
In parent outfit Dick Lovett Companies’ newly published accounts for the year ended December 31, 2023, the Swindon-based new and used car dealership chain reported a turnover of £822.064m – up 7% on 2022’s £769.763m.
The accompanying strategic report, signed on behalf of the board by director Julian Winterburn, hailed it as ‘the first time in the group’s history that turnover has been above £800m’.
However, its pre-tax profit of £24.353m was down 48% on 2022’s record figure of £47.174m, the latter of which, said the board, had included the profit from selling land and buildings from the former BMW and Mini Bath dealership.
Dick Lovett represents BMW, Mini, Porsche, Aston Martin, Land Rover, Jaguar and Ferrari, but it said that profit for all brands except Porsche was down on the previous year’s figures.
The board said: ‘Trading was not without its difficulties, with the supply of new cars still unpredictable and increasing interest rates also having an impact on finance rates for new and used vehicles.
‘Margins on vehicles were also down on the prior year as supply of new vehicles improved and residuals on electric cars became more difficult.’
The board said its strong trading performance had seen the group stay in a strong and positive cash position, even after ‘a significant investment programme in dealership redevelopment and other assets’.
As such, it said, its net equity was more than £170m for the first time.
The board highlighted ‘the significant investment in the building of the new Porsche Newport dealership which will open in 2024 to relocate the current Porsche Cardiff dealership’.
Among other investments, the group said it had also bought a property in Hungerford to relocate the BMW and Mini dalerships while their sites are rebuilt and refurbished in 2024.
The group’s average monthly number of employees, including the directors, went up from 909 to 964, with most of the increases in servicing and sales. However, the bodyshop division’s numbers fell by six to 62.
Directors’ remuneration went down from £1.648m to £1.184m, although the highest-paid director saw their remuneration go up from £680,000 to £996,000.
No ordinary dividends were paid and the directors didn’t recommend paying a further dividend.
Dick Lovett, which can trace its roots back to 1959, has dealerships covering the south-west of England and Wales and is the longest-serving official BMW partner in the UK, with its connection to the brand stretching back to 1968.
Main image via Google Street View shows the Dick Lovett Porsche and Ferrari showrooms in Swindon
