8:38 am, April 26, 2022
Ferrari, Porsche and Jaguar franchise holders Helston Garages increased its return on sales to an incredible 4.9 per cent last year.
The private motor group saw EBITDA profit rocket to £33.9m in 2021 – up from £15.1m the year before – as return on sales leapt from 2.1 per cent in 2020.
Turnover increased to £626m (2020: £511m) as the group praised ‘outstanding contributions’ from management and staff for its performance.
The group distributed a dividend of £2.3m to its shareholders.
Helston Garages has 37 franchised dealerships in the south west including five BMW, three Jaguar, one Porsche and four Land Rover sites.
It also represents the VW Group, Peugeot and Volvo.
The group admitted that 10 per cent of its profits could be attributed to government support, though – ‘mainly’ in the retail rates relief.
In its annual accounts, filed this week at Companies House, the group said a restructuring in the spring of 2020 has resulted in a ‘refocused and more efficient workforce’.
Other factors that contributed to the group’s success included service department profitability improving 35 per cent on 2018.
Cash profits generated in 2020 and 2021 were used to remove ‘all possible funding costs from the business’.
‘Early months of 2022 have continued to be challenging with recent upsurges in Covid infection and the horrific events in Ukraine adding further supply challenges as well as inflationary pressures,’ the group said in its annual report.
‘Nevertheless, 2022 performance is, to-date, ahead of plan with some pleasing performances in a number of areas and we hold our largest ever order book, both in terms of volume and margin.
‘The directors approach an uncertain 2022 with this strong foundation – including excellent liquidity and an outstanding portfolio of brands – to generate the best possible return whatever the market may throw at us.’
The group said that used car price rises, as well as the shortage of supply of new and used cars, meant 2021 will be the firm’s ‘best year ever’.
‘This is certainly the case for Helston Garages Group, recording a record profit or more than double any previous year and return on sales of 4.9 per cent which is very must at the top of the aspirational range in the franchised motor dealer sector,’ added the firm.
The family owned group saw directors Betty Vera Carr and David Stanley Carr removed from Companies House during the year in January 2022 and October 2021 respectively.
Mr Carr resigned in October and Mrs Carr died earlier this year.
Helston Garages was the 17th most profitable dealer group in the Car Dealer Top 100 in 2021.
