12:06 pm, September 29, 2020
Time is running out for dealers to enter the the first ever Car Dealer Top 100 – an unprecedented picture of the most profitable car dealers in the UK.
The Car Dealer Top 100 in association with ASE Global and sponsored by GForces will be the first of its type.
Never before have dealers large and small, franchised and independents been pitted together for a pure picture of the most profitable businesses in the country.
The league table will rank dealers by profit, not turnover – a first for the industry.
The deadline for dealers to submit their accounts for years ended February 28, 2020 is September 30, at 5pm, filed with either Companies House or submitted directly to Car Dealer and ASE Global (details below).
The accounts will be ranked using EBITDA and will be adjusted for exceptional items presented on the face of the income statement.
The league table will take into account results pre-Covid-19 to give a snapshot of where dealers were before the crisis.
Focusing on the profit businesses make is what’s fascinating, believes Tim Smith, chief commercial officer of the Top 100 headline sponsor GForces.
‘We’re a relatively small company and we always have to look at the bottom line,’ he says in the exclusive video at the top of this story.
‘Profit is the single most important part of what we do – if we don’t make profit, we don’t survive. When we shine this light on the industry, it’ll be interesting to see who are the top performers – that’s why we are delighted to be involved.’
Smith says the Car Dealer Top 100 will give a ‘level playing field’ for dealers of all shapes and sizes to be compared.
He said: ‘As a franchised dealer, you operate under the auspices of manufacturers with a lot of restrictions – there are benefits, obviously, like volume bonuses.
‘As independent, it’s all about swift stock turn, buying right, trading and getting profit out of every single vehicle.
‘However, as with all businesses, it comes down to efficiency of operation, the skill within the organisation in order to make the most of the resources at its disposal.
‘This is a fair playing field. The scale of some of the largest dealer groups plays into this, but what is going to be really interesting is how efficient each sector is.’
Who does Smith think will come out on top?
‘Normally I would say a franchised dealer but this year we’ve had profit warnings, delays in the publication of results,’ he says.
‘I think we will absolutely see some surprises.
‘I still think, however, it will be one of the big boys. One name I am interested, however, is Big Motoring World – it will be interesting to see how it does in these results.’
It’s the focus on profit which will make the Car Dealer Top 100 fascinating viewing, believes ASE Global chairman Mike Jones.
‘‘The trade is permanently ranked at the moment based on turnover – and turnover isn’t everything in this industry.
‘I think it will be really interesting to combine the non-franchised retailers with the franchised and people can start seeing where the most money in the industry is being made.’
And Jones is looking forward to seeing who comes out on top
He said: ‘I think we will absolutely see some surprises.’
The deadline for dealers to submit their accounts is September 30. Car dealers who would like to be included in the list can ensure they are considered by emailing their accounts to [email protected].
The list will be revealed in October.
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