Chorley-MG-exterior-scaledChorley-MG-exterior-scaled

News

Chorley Group posts record turnover but swings to £983k pre-tax loss in 2023

  • Family-run firm sees profits swing to £983,000 loss
  • Falling used car values and high interest rates are blamed
  • Despite this, company posted record turnover despite showrooms being shut
  • Directors remain positive and state business will return to profit in 2024

Time 9:11 am, October 10, 2024

Directors at Chorley Group have expressed ‘disappointment’ at the firm’s £983,000 pre-tax loss it made in 2023 despite it clocking up a record turnover, but have promised a return to profitability in 2024 as their long term business plan kicks up a gear.

Latest accounts filed under Bugle Inn Motor Company show earnings swung dramatically to the red for the year ended December 31, 2023. Twelve months earlier, the business – which trades as Chorley Group – posted a pre-tax profit of £2.02m in 2022.

Despite a strong first half of the year, the family-run firm experienced negative headwinds like many motor trade businesses, such as falling used car values and interest rates.


Summarising the year, managing director Adam Turner said: ‘The final trading result in 2023 was subject to a multitude of external challenges which the directors are pleased the company managed to successfully navigate, however, the board were disappointed with the final result driven by a challenging second half of the year.

‘After a buoyant first half of the year, the company was well placed to perform in line with the company’s realigned expectations. The final stage of the company’s centralised functions plan was successfully executed and the directors continued to execute the company’s multi-brand expansion plans.’

He added: ‘The second half of 2023 brought about a number of challenges driven by mainly external factors, the rapid decline in electric vehicle prices, the total decline in the used sector and the rise in cost base driven by the company’s exposure to interest rate changes were all significant contributors to a disappointing financial performance in the second half of the year, despite a welcome increase in turnover.’


Turnover for the year rose by a substantial 17.1% or £41.2m, from £240.2m to £281.4m. Moreover, it was the highest revenue for a calendar year in the firm’s 34-year history.

Turner remarked that the company’s board was particularly pleased with the increase in turnover, especially as two dealerships were closed and another two began ‘significant disruptive’ works.

During the year, the business disposed of land and buildings in respect of its Skelmersdale site, resulting in a profit of disposal of £464,000 which was represented in its operating profit of £421,000 – an 83.4% change on 2022’s £2.5m operating profit figure.

Results season so far…

Looking ahead, Turner stated the directors expect the business to return to profitability in 2024 as they action their long-term plan.

He said: ‘The board remain confident in the company’s ability to executive their long term “Automotive Destinations plan” and return the company to profit upon completion of the extensive redevelopment plans in mid-late 2024, when physical disruption to the locations becomes limited.’

Chorley Group has dealerships across Lancashire and Greater Manchester, and has franchises with Nissan, Hyundai, Kia, MG, Isuzu and GWM Ora, along with Stellantis brands Peugeot, Citroen and Vauxhall.

James Batchelor's avatar

James – or Batch as he’s known – started at Car Dealer in 2010, first as the work experience boy, eventually becoming editor in 2013. He worked for Auto Express as editor-at-large from 2014 and was the face of Carbuyer’s YouTube reviews. In 2020, he went freelance and now writes for a number of national titles and contributes regularly to Car Dealer. In October 2021 he became Car Dealer's associate editor.



More stories...

Advert
Server 108