10:51 am, May 30, 2023
Barretts of Canterbury saw its pre-tax profit slump by more than a fifth last year despite turnover increasing.
Its accounts for the year ended December 31, 2022, which have been newly published via Companies House, show it made £5.12m last year versus £6.463m the year before – a drop of 21 per cent.
Turnover, however, rose from £231.484m to £261.383m – a rise of 13 per cent.
Operating profit, meanwhile, fell by 15 per cent from £7.008m to £5.991m.
During the year, it received £205,000 in government grants – up from £167,000 in 2021 – but no furlough income. It was given £291,000 in furlough grants the year before.
The company, which also has a property development subsidiary, said trading for the year had been strong, specifically for used cars, but new car supply had stayed ‘muted’ because of ‘the continuing effects of the global shortage in semiconductors and battery components restraining manufacturer production’.
It added that the war in Ukraine had led to a significant increase in energy prices as well as putting extra pressure on manufacturers’ parts supply chains.
Barretts warned that a sustained increase in energy prices could affect its cost base, while an escalation in the conflict could affect the supply of new cars and parts.
The average monthly number of employees rose from 429 to 467, entirely at dealerships, with admin staff falling by two.
Meanwhile, the highest-paid director, who wasn’t named, received £239,000 – a £15,000 drop in salary versus 2021.
In the accompanying report, signed on behalf of the board by director Paul Barrett, the company said it had found it difficult to recruit qualified people who had the right skill levels.
As such, it had embarked on a programme of apprenticeship and other training and by the year end had 27 apprentices employed across the business.
The family-owned Car Dealer Top 100 business, which sells new and used Jaguar, Land Rover, BMW, Mini, Citroen, DS, and Honda vehicles, has been established for more than 120 years.
It boasts 11 showrooms plus an accident repair centre.
Image via Google Street View shows Barretts’ Jaguar and Land Rover showrooms in Canterbury
