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Dealer group Harwoods announces reduced 2020 profit of £2.57m

  • Dealer group Harwoods sees profits fall by 41 per cent in 2020
  • Firm made £2.57m in 2020 compared to £3.64m in 2019
  • Worthing-based company claimed £3.7m in furlough cash

Time 1 week ago

Dealer group Harwoods posted a reduced profit of £2.57m in 2020, the firm’s accounts have shown.

A financial report published via Companies House shows that the group’s pre-tax profits fell by over 41 per cent from the £3.64m made in the pre-pandemic 2019.

The reduction was largely caused by a drop in turnover, which came as a result of multiple national lockdowns which forced dealerships to close at the height of the pandemic.

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In the 12 months up to December 31, 2020, Harwoods turned over £494.35m – a reduction of close to ten per cent from 2019 when the firm brought in £541.2m.

A small amount of last years’ turnover came from aftersales and fuel, which brought in £64.73m, but most was from vehicles, which accounted for £429.61.

In 2019, vehicles made up £468.18m of the turnover with £73.01m coming from aftersales and fuel.

The latest accounts show that without help from the government’s job retention scheme, Harwoods would likely have made a loss in 2020.


The Worthing-based dealer group claimed £3.7m in furlough cash to help it through the Covid-hit year.

Wages and salaries fell slightly throughout the year with Harwoods shelling out £31.8m compared to £31.95m in 2019.

However, directors emoluments rose from £961,321 in 2019 to £1.04m in 2020.


Among the biggest investments was a new Volvo dealerships in Crawley, although bosses did divest of two development sites elsewhere.

In a statement included in the accounts, Guy Rowson, Harwoods’ secretary, said: ‘The management of the business and the nature of the group strategy are subject to a number of risks.

‘The main one is that the general economic climate, including the potential impact of Brexit.

‘The performance in 2020 shows that management has been able to keep abreast of these conditions, and they do not believe the risks surrounding Brexit would have a significant impact.

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‘During 2020, the new risk of Coronavirus has has emerged. This continues to impact all businesses in the UK (and globally).

‘The directors have implemented actions to take account of this risk, to ensure the group can remain profitable.

‘The directors are working with all staff to ensure their continuing welfare and with customers to ensure their requirements can be met.’

How did other dealer groups get on in 2020?

 

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.

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