7:46 am, May 22, 2023
Dealer group Dick Lovett enjoyed a record-breaking year in 2022, despite bosses’ concerns over the ‘unpredictable’ new car market.
That is according to new documents filed with Companies House which show the Car Dealer Top 100 outfit enjoyed a stellar period in the 12 months to the end of December 2022.
Accounts for Dick Lovett Companies Ltd show that the firm’s turnover rose to £769.7m last year – the first time the group has passed the £700m mark.
That meant that pre-tax profits also rose to record levels, with the company making an impressive £47.2m compared to £24.4m in 2021.
Directors say that figure was boosted, not only an ‘outstanding trading performance’, but also the sale of the firm’s BMW and Mini showroom in Bath.
It is planned that the proceeds of that sale will be reinvested into new building projects, including its new flagship Melksham dealership, which took over from the Bath site.
There are also plans for a new Porsche site in Cardiff and a significant redesign of its BMW business in Hungerford.
In a statement included in the accounts, director Julian Winterburn, said: ‘2022, saw a record trading year with turnover of nearly £770m with this being the first time in the company’s history that turnover has been above £700m.
‘Pre-tax profit of £47.2m was also a record and compared to the prior year of £24.4m.
‘All brands in the group performed well in 2022 however BMW, Mini, Porsche and Ferrari had outstanding years and all set new profit records.
‘Trading was not without its difficulties with the supply of new cars still unpredictable and increasing interest rates also having an impact on finance rates of new and used vehicles.
‘In line with many businesses, resource was also a challenge given the limited labour market and therefore it has been essential that the group continues to invest significantly in training.
‘The increase in pre tax profit was not only attributable to an outstanding trading performance but the sale of the BMW and Mini site in Bath also made a significant contribution to the year’s result.
‘All proceeds from the sale will be reinvested in future building projects, including the completed showroom in Melksham to accommodate the BMW and Mini business transferred from Bath in 2022.
Further investment is planned in 2023 with a new Porsche dealership being built to replace the current Cardiff location and plans are already in development for a redesign of BMW Hungerford.’
The accounts revealed that the vast majority of the increased turnover (£730.67m) came from sales, with the rendering of services raising a further £28.26m and commission £10.83m.
The year also saw an end to the furlough scheme, which paid Dick Lovett Companies £565,000 in 2021.
Elsewhere, staff numbers rose from 872 to 909 with the group’s wage bill reaching £30.37m.
