Hendy Group has posted a reduced 2020 pre-tax profit of £1.11m despite being one of the few dealer groups to record an improved turnover during the Covid-hit year.
The Hampshire-based firm brought in an impressive £732.78m in turnover last year – a rise of around 15 per cent when compared to the £623.74m it made in 2019.
Accounts published via Companies House show that £648.6m of the turnover cash came from vehicles while a further £84.18m was brought in via aftersales.
Despite the rise, Hendy Group Ltd’s profits still fell as it joined the rest of the industry in battling the Covid-19 pandemic.
After making a pre-tax profit of £2.64m in 2019, Hendy saw a 58 per cent reduction in 2020. It recorded a profit of £1.11m before tax.
The accounts show that part of the reason for the slide was an increased expenditure on wages and salaries.
The firm, which sponsors Hampshire County Cricket Club, paid staff £53.05m in 2020 compared to £37.9m in 2019.
Wages were partially paid using the government’s job retention scheme, with Hendy accepting £10.14m in furlough cash.
Among other outgoings was the £29.65m purchase of Inchcape’s Jaguar Land Rover dealership in Southampton.
In a statement included in the accounts, Jonathan Moritz, a director of the firm, said Covid and Brexit were among the factors impacting the business.
He said: ‘The key focus for 2020 was the response to the Covid 19 pandemic, with the two principal aims being to ensure ongoing liquidity and to minimise damage to the balance sheet from the extended periods of showroom closures.
‘There are risks to the future businesses in any sector, including the mode of trade.
‘These include macroeconomic factors, such as the broader and the prevailing attitude towards motor vehicles, as compared with other means of transport, the fuel price and interest rates.
‘Beyond macroeconomic factors, the company faces risk in respect of the position of the manufacturers with whom dealer agreements are made.
‘The manufacturer partners, not only developed with varying degrees of effectiveness, but are also affected differently by external market factors. The impact of Brexit on import and export activity is a good example.’
How did other dealer groups got on in 2020?
- Glyn Hopkin posts improved profit in 2020 despite being hit by pandemic
- Peter Vardy sees profits rise by close to 50 per cent as dealer group comes out on top in battle against pandemic
- Rybrook Group announces reduced pre-tax profit of £3.25m for 2020
- Arnold Clark posts mighty profit of £156.5m for 2020 and now calls itself a ‘stronger’ and ‘leaner’ business
- Donnelly Group benefits from furlough scheme to make £1.46m profit in 2020 after previous loss of £2.66m
- Bells Motor Group posts improved pre-tax profit of £1.4m after claiming nearly £400,000 in furlough cash
- Motorline doubles 2020 pre-tax profits but relies heavily on government furlough cash, claiming £7.1m
- Jardine Motors Group suffers catastrophic year as £8.3m operating profit slides to £9.8m loss despite £12m-plus furlough support
- Trade Centre Group’s pre-tax profit drops by 58 per cent to £7.5m for year, thanks to pandemic
- Furrows enjoys 38 per cent profit rise after being given more than £1.5m of furlough grants
- John Clark Motor Group’s pre-tax profit more than doubles to £6.25m despite drop in sales
- Bentleys Motor Group swings from loss to profit – helped by furlough handouts
- Williams Group’s pre-tax profit soars by 114 per cent to £6m helped by £5m-plus in furlough support
- Lookers 2020 results show £14.1m profit as it emerges from turbulent year as ‘a better business’
- WR Davies notches up record year as nearly £1.5m in furlough cash helps it through pandemic
- Caffyns’ pre-tax profit soars by nearly 1,300 per cent, thanks to £1.3m in furlough grants
- Johnsons Cars pre-tax profit soars to £3.2m from £632,000 during ‘turbulent year’
- Yeomans more than doubles its pre-tax profit after claiming £2.53m in furlough grants
- Vertu Motors: ‘Impressive’ results show group made £24.6m profit last year – ahead of all predictions