7:30 am, November 9, 2022
Pentagon Motor Group’s parent company clocked up revenues of £1.12bn in its last financial year.
Accounts for parent company Motus Group (UK) for the period ending June 30, 2022, just filed at Companies House, show the firm clocked up profit before tax of £17.2m – up from £10.7m the year before.
Pentagon Motor Group is run by former Peugeot MD David Peel, pictured.
It operates Vauxhall, Ford, Peugeot, Citroen, Seat, Nissan, Renault, Mazda, Dacia, Kia and Cupra dealerships in locations across the UK.
Its commercial vehicle division runs franchised dealerships for DAF, Volkswagen, Ford, Fiat, Isuzu and Maxus. The group also sells trucks.
In its annual report, the firm said: ‘The demand for new and used vehicles exceeded supply in the year which had a positive impact on margins.
‘The global automotive industry continues to experience supply chain, and operational disruptions and substantial increases in production, freight, and logistic costs as a result of Covid and the war in Ukraine.
‘Vehicle supply remained constrained in the year in which there was strong consumer demand.
‘The impact on revenues resulting from reduced vehicle sale volumes was counterbalanced by significant increases in vehicle prices. Furthermore, the business experienced an increase in aftersales revenue.
‘Increasing inflationary pressure coupled with staff shortages has increased operating expenses and staffing costs. Despite these challenges, the business achieved strong performance for the year.’
Hinting at the next year’s performance, the first quarter of its new financial year, which covers the summer months, have seen trading in line with the last.
The firm said continued supply issues have resulted in ‘lower volumes while pricing remains strong’.
But the firm is worried about ‘dampening consumer demand’ as economic conditions worsen.
It has warned that it is planning for the base interest rate to rise to 4.75 per cent and its energy costs to rocket by 100 per cent after the government cap ends in March.
‘The macro economic environment with higher inflation and increasing interest rates is showing signs of dampening consumer demand in the short term,’ said the group.
Directors were paid a combined £1.5m in the year.
Motus was the 27th in the Car Dealer Top 100 list of most profitable car dealers last year.
Last week, Pentagon became the latest dealership chain to bring in Sunday closing to help improve the work-life balance of its workforce.
The group said it will be introducing the initiative on a temporary basis as of November 6, following feedback from an employee survey in which its sales staff said they wanted a better work-life balance.
Pentagon said the three-month trial would ‘explore how this works for our staff and customers’, and would effectively move the company from a 5 ½-day sales working rota to a five-day cycle.
