10:56 am, August 29, 2024
Bosses at dealer group Hartwell say the firm put in a ‘strong financial performance’ last year, despite profits plummeting by almost 70%.
The Oxfordshire-based firm’s annual accounts, published via Companies House, show the Ford specialist’s pre-tax profit dipped below £1m in the 12 months to November 30, 2023.
The Car Dealer Top 100 retailer made £990,000 before tax, representing a 68.8% decline on the previous year’s figure of £3.17m.
That was despite an improved turnover of £250.43m, compared to £230.34m in 2022 – a rise of 8.7%.
In a statement included in the accounts, directors admitted to headaches over ‘sourcing quality stock’ and shrinking margins, as well as bemoaning a reduction in manufacturer bonuses.
However, the board insisted they were happy with the company’s performance in 2023.
Director Kayleigh Rowe said: ‘A combination of strong demand for used cars and service and repair work, allowed for a strong financial performance in the financial year ended 30 November 2023.
‘Despite the sustained high demand for used cars, challenges persist in sourcing quality stock at competitive prices. We consider used stock car management to be a primary focus area.
‘New vehicle sales experienced an upsurge both in volume and sales value, indicative of the increasing consumer demand.
‘Nonetheless, despite the heightened sales figures, gross profit witnessed a decline due to diminished margins and reductions in manufacturer bonuses.’
The vast majority of Hartwell’s improved turnover was generated by vehicle sales, which brought in an impressive £240.74m in 2023.
Elsewhere, aftersales raised £9.25m and finance arrangements £445,000. The company also received a very handy £1.87m in rent throughout the year.
When it came to its employees, the group spent £12.48m in wages and salaries in 2023, compared to £12.94m in 2022. The dip can be explained by a reduction in overall staff numbers, which fell from 366 to 341.
Yesterday (Aug 28), Car Dealer reported how directors at fellow dealer group Holdcroft awarded themselves a 345% pay rise last year, despite a slump in profits.
By contrast, Hartwell’s directors’ remunerations fell from £581,000 to £498,000, although the best paid director did receive a small pay rise from £365,139 to £369,287.
Results season so far…
- Eastern Western sees profits slide as Mercedes’ agency sales model sucks £50m from revenue
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- John Clark Motor Group breaks £1bn turnover barrier but pre-tax profit sinks by almost 10%
- Hartwell bosses happy with ‘strong financial performance’ despite 70% slump in profits
- Holdcroft directors award themselves 345% pay rise as profit takes a tumble
- Vines Motor Group sees profits slump as bosses blame wider economic factors
- Car dealer group Parkway is the latest retailer to see profits wiped out as firm takes 75% hit
- Family-run Masters of Beckenham admits ‘concerns’ about Kia relationship as profits tumble
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Looking ahead, the firm is now looking to expand, after not adding any new franchises to its dealer network in 2023.
Rowe said: ‘There was no addition or reduction to the number of sites in this financial year which remains at 11 sites representing Ford across a mix of car and commercial vehicle sites, together with a large multi-franchised used car operator in Oxford that has authorised repairer status for Renault and Dacia.
‘The directors are always keen to explore any opportunity for measured expansion that sits within the company’s existing area of representation and which compliments the ethos and strategy of the company.
The primary objectives for the upcoming financial year include incorporating new franchises into our existing dealership network, enhancing and modernising the infrastructure of our current facilities and further expanding the company’s multi-franchise used car sales operations at several prominent existing locations.
