7:15 am, January 12, 2024
New and used car dealership Luscombe Motors saw its turnover almost double last year to nearly £72m with its pre-tax profit rising marginally on the back of it.
The newly published accounts for holding company Luscombe Motors Holdings Ltd for the year ended May 31, 2023 show its revenue soared from £38.1m the year before to £71.9m.
Meanwhile, pre-tax profit at the Leeds-based outfit, which has the franchises for Suzuki and MG, went up from £2.22m to £2.27m, while gross profit rose from £5.1m to £6.4m.
Return on sales was down from 5.1% to 3%, which was attributed to an increase in MG fleet sales.
Ordinary dividends totalling £1m were paid, but the directors didn’t recommend paying another dividend.
Their remuneration came to £387,968 – up 345% from £87,168 the year before – which included £220,954 for the highest-paid director, whose amount received for the 2021/22 financial year wasn’t given since the total remuneration for directors was less than £200,000.
Luscombe’s also runs a fleet department, which has developed significantly with the growth of the MG franchise, said the directors.
Group sales director Sam Luscombe told Car Dealer: ‘We’re delighted with the results. It’s been a challenging year but a very successful one.’
He also revealed to Car Dealer that the dealership would be launching a specialist used EV centre this year to be in on the start of what the company predicts will become a major market. despite industry uncertainty at the moment.
Additions have been made to the senior management team that have reduced the reliance on group managing director Robin Luscombe, said the strategic report.
The 62-year-old underwent surgery for prostate cancer yesterday, and in a post on LinkedIn he said he had ‘been blown away by the messages of support and best wishes’.
Sam Luscombe told Car Dealer that the op to remove the cancer had gone well.
In the strategic report, which was signed on December 14 on behalf of the board by Robin Luscombe, who was Car Dealer’s Lifetime Achievement Award winner in 2022, the directors said: ‘Trading for the financial year has exceeded expectations for both turnover and profit, with sales slowly returning to pre-Covid levels.
‘New vehicle supply for both Suzuki and MG has improved and we are tracking to return to pre-Covid sales for new Suzuki cars.’
Luscombe’s formerly held the franchise for Mitsubishi as well, but with the withdrawal of the manufacturer from sales in the UK, the dealership now operates an aftersales division for the Japanese firm.
The report said that ‘whilst Mitsubishi parts sales remain consistent, due to less competition, we do expect sales to slow in the coming years’.
Staff headcount went up from 63 to 78 during the year, mainly in the service department, but there were also additions in sales, and employees were given ‘a record profit share bonus’.
During the year, Luscombe’s invested some £500,000 in renewable energy, with £250,000 going on solar panels across its four buildings.
Looking ahead, the directors said in the report: ‘Trading for the current financial year has started well. We’ve seen increased turnover across each department.
‘Suzuki have a strong proposition of quality, value and trust and MG have a range of new models arriving and demand for used cars is strong.’
They added: ‘Our knowledge and experience with electric vehicles has enabled us to expand our used vehicle stock to include more used EVs, as this sector will only see large increases over the next few years.
‘Whilst Suzuki are 100% hybrid and will continue to be for another year, this presents excellent opportunities as many other manufacturers veer away from value-based ICE hybrid cars.’
Luscombe’s will also be looking to add to its franchise portfolio and may also expand its site in Low Road. The report finishes by thanking the staff and franchise partners for their support over the year.
Main image via Google Street View
