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Hendy Group announces reduced 2020 pre-tax profit of £1.11m – despite being one of few dealers to see improved turnover

  • Hendy records reduced profit of £1.11m in 2020
  • Dealer group is one of few business to see an improved turnover in Covid-hit year
  • Firm spent big on purchasing Inchcape Jaguar Land Rover dealership

Time 3 weeks ago

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.

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‘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.’

Hendy Hampshire Cricket May 2021

How did other dealer groups got on in 2020?

 

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.

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