11:37 am, September 22, 2022
Bosses at Drive Motor Retail say the company has ‘consistently outperformed the national average in all areas’ after announcing record profits for 2021.
Accounts published via Companies House show that the Leicester-based outfit enjoyed a strong year across the board in the 12 months ending December 31, 2021.
During the period covered by the accounts, Drive opened new Citroen and MG franchises and in turn saw its turnover rise by by 17 per cent to £273.3m (2020: £226.17).
Of that revenue £254.63m came from the sale of goods while the ‘rendering of services’ brought in a further £18.23m.
Pre-tax profit also soared above previous levels, with the firm making an impressive £6.4m compared to £3.4m a year previously.
The impressive results were largely made possible by a 41.1 per cent rise in new vehicle sales and a 16.4 per cent increase in used vehicle sales.
Bosses also cut the company’s cost base by £2.1m by reducing its average number of employees from 786 to 693.
The results were heavily impacted by the impact of the pandemic, with the year parts of 2021 dogged with national lockdowns.
However, as the months rolled on, Covid began to have less of an effect and as such Drive were able to slash the amount of furlough cash it claimed.
Overall, the firm received £433,000 from the government scheme, compared to £3.37m in the previous accounting period.
As a result, directors at the firm say it is hard to compare the results with previous years but admitted they were thrilled with the final outcome.
Stuart Harrison, joint MD at Drive Motor Retail said: ‘The year was impacted by Covid-19 and national retail lockdowns which resulted in restricted trading practices and showing closures in Q1.
‘A subsequent shortfall in new vehicle supply, due to the global shortage of semiconductors, significantly increased the cost and customer lead time for new vehicles, which in turn increased demand for used cars.
‘Against this complex trading backdrop, the group was able to deliver profit before tax of £6.4m in 2021.
‘The trading performance in 2021 demonstrates the group’s resilience and ability to continue with continually deliver at the highest levels for the benefit of our customers, colleagues, manufacturer partners and shareholders.’
He continued: ‘All comparisons to prior years trading are impacted by the restrictions due to Covid-19 but the group has consistently outperformed the national average in all areas.
‘In summary, the group had a good year returning profits well ahead of our peer groups in terms of return on sales and capital employed.
‘The directors are pleased with the performance of the group and the strength of the balance sheet, which put the group in a strong position to continue delivering leading returns for its stakeholders.’
Pictured: Stuart-Harrison and Rob-Keenan, joint MDs of Drive Motor Retail
