10:19 am, December 20, 2022
Luscombe Motors has seen its pre-tax profit increase by 37 per cent to a record amount of more than £2m, newly published accounts show.
The Leeds-based dealership – whose MD Robin Luscombe was presented with the Lifetime Achievement trophy at the 2022 Car Dealer Used Car Awards last month – made £2,155,511 during the year to May 31, 2022, versus £1,569,258 the previous year.
Turnover, meanwhile, rose by almost 10 per cent to £38,117,464 from £34,722,436.
Return on sales stood at 5.1 per cent, versus 4.5 per cent in 2021.
Luscombe’s has the sales franchises for Suzuki and MG, with the latter operating from its former Mitsubishi showroom after the Japanese brand withdrew from selling new cars in the UK.
A new Mitsubishi aftersales franchise agreement with International Motors began on October 1, 2021, the day after the sales and aftersales franchise ended.
Luscombe’s didn’t claim any government grants – for example, under the furlough scheme – during the year, as opposed to the £166,859 it claimed over its previous financial year.
The average monthly number of employees rose from 56 to 62, mainly in sales.
Robin Luscombe acknowledges the audience’s applause as he collects his Lifetime Achievement Award
Meanwhile, the accompanying strategic report, signed off on behalf of the board by Robin Luscombe, said trading for the financial year continued to exceed expectations – especially where the MG franchise was concerned.
The run-out of the Mitsubishi sales franchise also contributed to a record turnover and profit performance for the company, he said.
And it was revealed that MG dealer principal and Robin’s son Sam, who was made a director on May 1, was expected to take over as boss ‘in due course’.
The report said the existing management team had been strengthened and developed over the past year to reduce the reliance on Robin Luscombe and finance director David Taylor.
As well as Sam being lined up to become managing director, financial controller Amanda Catterall will succeed Taylor when he retires at the end of this month.
A retail head of sales is to be recruited as well to bolster the senior management team and vehicle sales operation.
Trading during June and August this year had proved ahead of expectations, the board said, thanks to the company benefiting from a backlog of MG orders after the 2020 and 2021 lockdowns.
The directors added: ‘The MG franchise with its range of electric vehicles continues to attract considerable interest from both existing and new customers.
‘Long-term product expectations for the Suzuki franchise remain positive.’
Luscombe’s said it would continue weighing up local market and property opportunities for further expansion, which could be via more EV franchise opportunities or by expanding its existing site.
The directors also thanked staff and franchise partners for their support over the past year.
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