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.
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.
‘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?
- Mercedes-Benz Retail Group announces pre-tax loss of £20.9m in 2020
- Glyn Hopkin posts improved profit in 2020 despite being hit by pandemic
- Hendy Group announces reduced 2020 pre-tax profit of £1.11m – despite being one of few dealers to see improved turnover
- Peter Vardy sees profits rise by close to 50 per cent as dealer group comes out on top in battle against pandemic
- Rybrook Group announces reduced pre-tax profit of £3.25m for 2020
- Arnold Clark posts mighty profit of £156.5m for 2020 and now calls itself a ‘stronger’ and ‘leaner’ business
- Donnelly Group benefits from furlough scheme to make £1.46m profit in 2020 after previous loss of £2.66m
- Bells Motor Group posts improved pre-tax profit of £1.4m after claiming nearly £400,000 in furlough cash
- Motorline doubles 2020 pre-tax profits but relies heavily on government furlough cash, claiming £7.1m
- Jardine Motors Group suffers catastrophic year as £8.3m operating profit slides to £9.8m loss despite £12m-plus furlough support
- Trade Centre Group’s pre-tax profit drops by 58 per cent to £7.5m for year, thanks to pandemic
- Furrows enjoys 38 per cent profit rise after being given more than £1.5m of furlough grants
- John Clark Motor Group’s pre-tax profit more than doubles to £6.25m despite drop in sales
- Bentleys Motor Group swings from loss to profit – helped by furlough handouts
- Williams Group’s pre-tax profit soars by 114 per cent to £6m helped by £5m-plus in furlough support
- Lookers 2020 results show £14.1m profit as it emerges from turbulent year as ‘a better business’
- WR Davies notches up record year as nearly £1.5m in furlough cash helps it through pandemic
- Caffyns’ pre-tax profit soars by nearly 1,300 per cent, thanks to £1.3m in furlough grants
- Johnsons Cars pre-tax profit soars to £3.2m from £632,000 during ‘turbulent year’
- Yeomans more than doubles its pre-tax profit after claiming £2.53m in furlough grants
- Vertu Motors: ‘Impressive’ results show group made £24.6m profit last year – ahead of all predictions