Group1 Automotive has a number of BMW dealersGroup1 Automotive has a number of BMW dealers

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Group 1 UK dealers clock up impressive quarterly profit company filings in America reveal

  • Group 1 Automotive UK dealers make £46.7m profit in first quarter
  • Despite closures of UK showrooms American owned group delivers impressive results
  • Revenues for the UK were down 13.4 per cent to £393m but profit dipped just 4.1 per cent
  • Group made gross profit of £1,624 per unit sold in first three months of 2021

Time 2 weeks ago

Group 1 Automotive’s UK car dealerships accounted for 13.5 per cent of its overall profits in the first quarter of 2021.

In an update on the first three months of the year the American business which has extensive dealership interests in the UK, reported revenue was up 11.9 per cent to $3bn (£2.1bn).

The group’s net income per share was a first quarter record of $5.52 – a 242.5 per cent increase on the same quarter in 2020.

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Group 1 operates Audi, BMW, Ford, Jaguar Land Rover, Mercedes, Kia and VW dealerships in the UK as well as many others across the east and south east.

It operates under the Barons & Chandlers, Beadles, Advantage Cars and Think Ford brands as well as its own.

Group 1 said the company’s UK operations accounted for 18.3 percent of total revenues and 13.5 percent of total gross profit.  

Same store total revenues decreased 13.4 per cent, to $547.2m (£393m), and same store total gross profit decreased 4.1 per cent, to $65.3m (£46.7m).

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Gross profit per unit sold in the UK for the company was up 51.9 per cent to £1,624.

Earl J. Hesterberg, Group 1’s president and chief executive officer, said: ‘I am especially pleased with these record first quarter results given significant business interruption in both our US and UK markets during the quarter.  

‘We lost a week of business in most of our Texas and Oklahoma operations due to the well-publicised February winter storm. 

‘Additionally, our UK showrooms were closed for the entire quarter due to government mandated lockdown measures.  

‘Clearly these factors reduced our sales and service volume to some degree, which makes our outstanding financial performance even more remarkable.’

Hesterberg added: ‘I’m extremely proud of our UK team for their performance during the five months from November 5 through early April when our showrooms were closed.  

‘This resulted in the closure of our physical vehicle sales departments. Nevertheless, our UK operation remained solidly profitable for the first quarter, as well as the entire five-month closure period.’

James Baggott's avatar

James is the founder and editor-in-chief of Car Dealer Magazine, and CEO of parent company Baize Group. James has been a motoring journalist for more than 20 years writing about cars and the car industry.

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