8:26 am, May 31, 2024
Dealer group Cars2 saw revenue boom by 14% last year despite a dip in pre-tax profit.
The business – which has sites in West and South Yorkshire and holds franchises with Hyundai, Seat, Nissan, Renault, Dacia and MG – finished a ‘challenging’ year strongly, directors said in newly filed accounts.
Turnover for the Car Dealer Top 100 firm jumped from £168m to £191.6m in the year ended December 31, 2023 – a 14% increase on 2022’s figures, itself a 26% rise on 2021.
Despite the boom, though, profit before tax slumped from £7.6m in 2022 to £4.1m – a near 46% fall.
In the accompanying report, director Allan Otley noted the past year was one of ‘low consumer confidence’ but concluded the business had traded strongly.
‘The trading year to 31st December 2023 was a further year of challenges due to chronic restrictions on new car supply and unreliable delivery timetables,’ he said.
‘Despite this, Cars2 delivered revenue growth of 14%. The company maintains focus on strong cost-control strategies in a marketplace that remains cost-inflationary due to high interest rates, stocking costs, high utility charges and the cost of skilled labour.’
He added: ‘The group continues to see overall face-to-face and e-commerce opportunities to do business increase year on year.
During the year Cars2 opened MG sales and aftersales outlets in Wakefield and Bradford, and it said it aims to expand operations in the future.
Otley expressed concern over the BEV market’s volatility and the desire to add brands that have conventional combustion-engined models to its mix.
He said: ‘Cars2 are also well placed with existing property opportunities to embrace potential new brand entrants into the UK market. These brands offer the benefits of a continued and fresh supply of ICE engine platform models to future-proof the company during a period of uncertain legislation in relation to BEV models and the government announcement to move the all out ban on new ICE engine models out to 2025.’
The report added that so far in 2024 used car sales have been strong, and that its e-commerce platform has delivered growth of 63% year on year.
March 2024 also delivered a 5% growth in new car ‘opportunities’ and a 46% in used.
Picture, top: Cars2 Nissan Huddersfield interior, March 2020
