12:49 pm, November 3, 2022
Peoples has seen its pre-tax profit soar to an an all-time high of £8.48m, it said today.
Announcing its results for the year ended July 31, 2022, the independent Ford retailer attributed the record performance – a rise of 6.2 per cent on 2021 – to its ‘relentless focus’.
Turnover dipped by 4.8 per cent to £275.6m, but return on sales was three per cent, which it said put it in the upper quartile of results for retailers in the sector.
Its commercial vehicle sales were up by two per cent – a marked contrast to the UK market average, which saw a decline of 24.2 per cent, according to the SMMT, said Peoples.
Peoples chairman Brian Gilda, pictured, said the results showed its strength and resilience in the face of the industry’s product supply challenges.
‘Despite the worldwide shortage of semiconductors which has affected both our vehicle volumes and turnover, our relentless focus on pursuing real business opportunities alongside stronger margins have allowed us to achieve record profits.
‘During the financial year, we established a new seven-person operational board which is more diverse and is tasked with ensuring we remain nimble and agile in this challenging market, and this has been key in delivering our best results in 39 years [since its formation].
‘We are particularly proud of our stand-out performance in commercial vehicle sales, which bucked the UK trend.
‘The Transit brand continues to outsell every other commercial vehicle in the UK and European market, and its popularity, coupled with the fact we have a team of exceptional commercial vehicle specialists, are a winning combination.’
There had been a market shift in consumer trends, he said, with Peoples seeing more Puma, Kuga and hybrid sales.
And Gilda believes that the ever-growing appetite for hybrid will extend to EVs as the charging infrastructure continues to improve.
As such, Peoples – which is the largest independent dealership in Europe retailing only Ford cars and commercial vehicles – said it had invested a six-figure sum on installing electric chargers at its dealerships, enabling it to increase the number of EVs in its fleet.
He also reflected on the recent decision by Ford to discontinue the iconic Ford Fiesta next year after 47 years of production as it accelerates its plans to become fully electric.
‘It’s the end of an era – so many people have had one at some point, myself included,’ he said.
‘But while it’s with nostalgia that I say goodbye to an old friend, I’m excited and encouraged by the future line-up.’
However, Peoples – which was founded in 1983 and has three dealerships in Edinburgh, Falkirk and Livingston plus three in Liverpool – cautioned that despite a strong financial year, this wasn’t a time for complacency.
Gilda explained: ‘We are immensely proud of these financial results, and indeed our current performance which is equally strong. Pre-tax profit for August, September and October is up 61 per cent on the same period last year.
‘However, we must be realistic – headwinds are coming and we need to be prepared.
‘The semiconductor shortages are expected to continue into 2023, and in addition to this we cannot ignore the current economic situation and consumer confidence, which will inevitably have an impact on the industry as a whole.
‘We therefore anticipate that growth in the coming year will be more modest, but along with the loyalty of our customers we have a first-class team of directors, management and staff whose tireless commitment will help us to navigate these challenges.’
