10:56 am, September 20, 2023
New and used car dealership chain the Vindis Group saw its pre-tax profit rocket by 40 per cent last year to nearly £10.3m.
Accounts for the year ended December 31, 2022, newly published on the Companies House website, show it made £10,284,654 profit before tax versus £7,357,088 the year before.
Operating profit, meanwhile, went up by 29 per cent from £9,425,995 to £12,118,122m at the business, which is ranked 40th in the current Car Dealer Top 100 of most profitable UK dealers.
That was on turnover that rose by four per cent from £362,381,599 to £378,243,100.
The Huntingdon-headquartered company’s return on capital employed – another key performance indicator highlighted by Vindis – was -26.9 per cent versus +30.4 per cent in 2021.
Ordinary dividends totalling £480,000 were paid for 2022.
In the accompanying strategic report, signed on behalf of the board by chairman Gary Vindis, the directors say: ‘2022 started well with strong margins and volumes throughout the first quarter.
‘New car supply remained problematic due to various reasons from component shortages due to the conflict in Europe through to logistical issues.
‘We worked hard to increase our used vehicle volumes to help compensate for any shortfall in new cars.
‘As the half year approached and the Bank of England base rate started to rise, our cost base came under pressure both directly from our vehicle stocking facility and indirectly through increased costs from suppliers.
‘The decision was made to complete a sale and leaseback on five properties during the year to fund a 50 per cent share buyback and to clear all long-term debt.
‘We timed the market well with proceeds exceeding original estimates, which put additional cash in the bank. This allowed us to reduce the use of our overdraft facility, saving interest costs.’
They added: ‘Towards the end of the year, used car prices, especially electric vehicles, started to fall sharply due to several reasons, so the board decided to make a provision back to Cap Clean (in previous years Cap Retail had been used as this accurately reflected the market).
‘This impacted the financial performance but ensured that the company is well positioned moving into 2023.
‘As a result, used car volume increased by circa five per cent. However, margins contracted due to being exceptionally high in the previous year.
‘There was a reduction in new car volume. However, margins remained very strong. Aftersales turnover was up year on year with a circa one per cent increase in hours sold.
‘The board were satisfied with this result, considering the macro-economic climate, and recognise and appreciate the effort made by all our staff in achieving this result.’
The Vindis Group was established in 1960 by ex-World War II Czech Spitfire pilot Frank Vindis, with its first showroom opening in Sawston the same year.
It now has a network of dealerships spanning six counties that represent Audi, Bentley, Ducati, Skoda, Seat, Cupra and Volkswagen, with Frank’s son Gary as chairman and grandson Jamie as MD.
Vindis Group also has four AutoNow used car showrooms, two trade parts divisions, and a fleet centre.
Pictured at top via Google Street View is Vindis’s Skoda dealership in Cambridge
