10:22 am, October 19, 2022
Dealer group Johnsons saw its profits rise by more than 200 per cent to reach record levels in 2021, new accounts have shown.
Documents published via Companies House show that the Worcestershire-based retailer enjoyed a stellar year in the 12 months to December 31, 2021.
Led mainly by improved used car performance, the firm ended the reporting period with a pre-tax profit of £10.83m – it’s highest result ever.
The figure represented a 235 per cent hike on the previous year, when the outfit made £3.22m before tax was paid.
Bosses put the impressive result down to ‘an upsurge in demand followed by enhanced margins’.
Operating in unique circumstances, the group also saw turnover rise from £495.6m to £629.1m.
The start of the year was dominated by Covid, with national lockdowns enforced throughout the early months of 2021, but some normality was able to resume as the period rolled on.
As a result, the Car Dealer Top 100 outfit was able to lessen its reliance on furlough payments. Overall, the firm claimed £1.8m in government grants relating to the pandemic against £6.25m in 2020.
In a statement included in the accounts, director Richard Martin said: ‘2021 has been a very successful year for the motor trade.
‘Johnsons Cars Ltd has delivered a record profit for the year, led mainly by the used car performance on the back of weaker new car supply along with strengthening new and used car margins.
‘It has been well reported that this all started back when the first lockdown in 2020 was ended in May of the same year.
‘The sector experienced an upsurge in demand followed by enhanced margins. This trend has continued into the first quarter of 2022.
‘The reasons can be put down to the lack of new car supply from our manufacturer partners who are suffering from supply chain issues, namely semiconductors and other components, along with sporadic quarantining in overseas countries.’
As well as improving financially, Johnsons also looked to grow its dealer network throughout 2021.
In September, the firm acquired Honda Wigan and gave the site a full refurbishment after renegotiating the lease.
The plot is now home to three showrooms representing Honda, Seat and Skoda.
The firm also bought Autosales Ltd which saw it take over the running of a Skoda showroom in Burntwood and two Suzuki sites in Bilston and Cannock.
Martin added: ‘Towards the end of the year we undertook the following acquisitions. In September 2021, we acquired the Honda dealership in Wigan renegotiated the lease on the property, refurbish the property and created three branded showrooms for Honda, Seat and Skoda.
‘The purchase of the Honda dealership was followed by the acquisition of 100 per cent of the share capital in auto sales limited, which represents Skoda in Burntwood and Suzuki in Bilston and Cannock.
‘The group continues with its policy of expansion, and is currently exploring several acquisitions and investment opportunities.’
