10:30 am, September 24, 2024
Car dealer Listers has become the latest automotive retailer to see its profits tumble in what has been a difficult period for the motor trade.
Car Dealer has reported on the likes of Vindis Group, Vospers, John Clark Motor Group and Hartwell in recent weeks, all of whom saw their pre-tax profits slashed in their latest accounts.
Now it’s the turn of Listers Group, which yesterday (Sep 23) posted its annual accounts, via Companies House.
The documents show that in the 12 months to March 31, 2024, the Warwickshire-based retailer made a profit before tax of £18.4m.
That figure is almost 55% down on the £40.5m the Car Dealer Top 100 firm made in its 2023 accounts, with bosses pointing to shrinking margins as a major factor in the result.
In the period covered by the accounts, Listers’ gross profit margin fell to 14.1%, compared to 15.1% last time out.
Despite this, the accounts do show several signs of strength including a turnover of £1.31bn – an improvement on 2023’s £1.29bn.
Looking at that revenue more closely, it is revealed that £1.15bn came from vehicle sales and a further £123.82m coming from aftersales.
Meanwhile, commissions raised £30.98m, with a further £9.26m coming via ‘other’ sources.
The firm also enjoyed a 17% hike in the number of cars it sold throughout the year with new and used vehicles improving by 25.3% and 4.9% respectively.
Reacting to the results, in a statement included in the accounts, Martin Vessey, company secretary at Listers, said: ‘During the year the group made a profit before taxation of £18.4m, with the group’s BMW/Mini, Mercedes-Benz, Porsche and Volkswagen divisions making te most significant contributions to group profit.
‘The year has sen an increase of 17.0% in the number of vehicles sold, including agency sales, with new vehicle sales increasing by 25.3% and used vehicle sales increasing by 4.9%.
‘Along with an increase in aftersales turnover of 9.8% and a decrease in the average sale price of used vehicles, this resulted in an increase in overall group turnover to £1.31bn.
‘The group’s overall gross profit margin has decreased to 14.1% primarily due to a decrease in vehicle sales margins as a result of increased new vehicle supply from vehicle manufacturers.’
‘Workforce is our biggest asset’
Last month, when fellow dealer group Holdcroft published its annual accounts, it was revealed that the directors had given themselves a 345% pay rise, despite a huge dip in profits.
The same cannot be said for the boss at Listers, who saw their remunerations fall to a combined £7.7m in 2024, compared to £11.9m in 2023, with the highest paid director receiving £2.9m, compared to £5.4m in the previous year.
On a wider level, the firm’s staff numbers rose from 2,041 to 2,183, with staff costs costing £103.8m.
Recognising the importance of his staff, Vessey added: ‘We recognise our dedicated workforce as our biggest asset and key to our success.
‘The board recognises that the success of the business is a product of the great people that work for the group and the many well-recognised and prestigious brands that trust it to represent them.
‘As a result, the group places considerable value on the welfare and engagement of its employees.’
Listers operates dozens of sites across the country and has dealer partnerships with the likes of Audi, BMW, Cupra, Honda, Jaguar Land Rover, Lexus and Mercedes.
It also represents Mini, Omoda, Porsche, Seat, Skoda, Smart, Toyota, Volkswagen and Volvo, as well as running specialist used car centres.
The year covered by the accounts saw the firm take on two Toyota dealerships and a Lexus site from Motorline.
The new additions, all in Bristol, generated a combined turnover of £42.4m and made a net loss of £1.7m.
At the end of the year Listers paid out a dividends of £8m compared to £10m in 2023.
