8:25 am, October 7, 2022
Dealer group City West Country has announced an improved pre-tax profit of £6.95m for 2021.
The Mercedes-Benz retailer, which operates sites in Bristol, Highbridge, Exeter and Roche, enjoyed a successful year despite a ‘general cautious outlook’ from customers.
New accounts published via Companies House show that the Exeter-based outfit saw an increased turnover in the 12 months to December 31, 2021.
Overall, the firm brought in an impressive £245m during the year – a 4.1 per cent rise on the £235.4m it generated in 2020.
According to the company accounts, the increased revenue came mostly from vehicles, which brought in around £222.5m. Meanwhile, aftersales produced around £22.5m.
As well as the improved turnover, profits also rose for City West Country in 2021 with the pre-tax figure experiencing a 12.4 per cent hike.
Bosses described the pre-tax profit of £6.95m as ‘satisfactory’ against 2020’s £6.2m figure, especially given tough market conditions.
The start of the year was dogged by national Coronavirus lockdowns, which forced showrooms to close to the public.
However, as the year rolled on, the pandemic began to have less of an impact on businesses and City West Country was able to reduce its dependance on furlough cash.
Throughout the year, the firm claimed a total of £411,000 via the government’s Coronavirus Job Retention Scheme, compared to £1.95m in 2020.
Reacting to the results in a statement included as part of the accounts, bosses said that the desirability of the Mercedes brand helped the dealer group to stay profitable.
Jacqueline Vincent, a director with the firm, said: ‘The year to December 2021 was a challenge for the wider motoring industry.
‘However, the company was very agile during the year reacting to different sales channel opportunities to enhance total income.
‘There was an increase in turnover and gross profit earned and careful management of the income from sales and operating costs resulted in a substantial increase in GP %’.
She added: ‘As was the case in 2020, the UK motor sector was still impacted by the Coronavirus pandemic.
‘However, the desirability of the Mercedes Benz brand and quality of the product offering significantly offset some of the wider sector challenges.
‘In addition, semiconductor shortages affect a new car supplies created a very strong used car market and record prices.
‘The directors consider the financial performance in 2021 to be satisfactory in the light of the wider economic climate, the extremely competitive UK motor retaining marketplace and the general cautious outlook adopted by consumers.
‘No businesses were acquired or disposed of during the year. The company continued to invest in all its sites in the year and this policy will continue.’
