12:31 pm, September 29, 2021
Dealer group Glyn Hopkin has announced an improved profit for 2020 despite being hit by the Covid pandemic and Mitsubishi’s decision to withdraw from the UK.
The London-based firm recorded a pre-tax profit of £1.54m last year – a rise of around 27 per cent from the 2019’s £1.12m.
The improved profit comes despite the group’s turnover falling by 18 per cent from £453.05m to £368.37m.
Accounts published with Companies House show that the success is largely down to £3.99m received in furlough cash from the government’s job retention scheme.
However, despite that, the firm actually spent more on wages and salaries in 2020 than it did in the last full year before the pandemic hit.
The group shelled out £29.28m paying staff, compared to £28.94m in 2019.
The cost of directors’ emoluments also rose from £2.34m to £2.63m.
In a statement included in the full accounts, the group’s finance director – Hady Laba – said that Covid had a huge impact on operations in 2020.
Glyn Hopkin, which owned two Mitsubishi dealerships, also had to contend with the Japanese carmaker’s decision to withdraw from the UK market.
Laba says the dealerships only formed a small part of the business and the company are due to receive compensation.
Commenting on the accounts, he said: ‘The directors are extremely pleased with this result, given the extraordinary circumstances associated with 2020.
‘The business was effectively non operational or at best only partially operational for months during the two Covid-19 generated lockdowns, firstly from late March to early June, and then again in November, when there was a partial lockdown.
‘This is reflected in the reduction in turnover, which as shown above, was below the average fall in the new vehicle market.
‘Whilst the company took advantage of the various government schemes, including the Coronavirus job retention scheme and business rates support, the business did not take up any of the various government sponsored loan options, and also continued to comply with its leasehold commitments to landlords, a number of whom cooperatively agreed rent reductions, holidays or deferrals and all agreed temporary changes to rent payment cycles.
‘The increased profit for the year also reflects the very strong trading performance between June and October, once the original lockdown restrictions were lifted.’
On Mitsubishi, he added: ‘During 2020 Mitsubishi Motors announced they would be withdrawing from their sales activities in Europe by the end of 2021.
‘Whilst the company has two Mitsubishi dealerships, these form a very small part of the overall business and the company will receive financial compensation, where appropriate.’
