Peter Vardy enjoyed a highly successful 2020 with pre-tax profits rising by almost 50 per cent, the dealer group’s annual accounts have shown.
The Motherwell-based firm made an impressive £9.3m before tax last year – a rise of 47.6 per cent on the pre-pandemic 2019.
The group managed to achieve the feat despite experiencing a fall in turnover, largely as a result of the pandemic forcing dealerships to close.
Overall, Peter Vardy had a turnover of £440.57m which was a 6.5 per cent fall on the previous year’s result of £471.15.
The firm’s accounts, published with Companies House, show that the profit was largely made possible by claiming £3.43m in furlough cash via the government’s job retention scheme.
The much-needed injection of funds allowed the dealer group to keep its head above water and return an EBITDA figure of £14.26m.
Throughout 2020, the group operated six volume and six prestige dealerships, two used car supermarket operations and a heritage cars dealership throughout Scotland.
It has franchised businesses representing BMW, Mini, Jaguar Land Rover, Porsche, and Vauxhall.
In the 12 months up until December 31, 2020, the firm spent £226,000 on directors emoluments, up from just £54,000 in 2019.
Chief executive Peter Vardy said: ‘2020 will be remembered as a terribly difficult period for society which profoundly influenced our colleagues, guests and communities in which we serve.
‘During this challenging period, we focused on the physical, mental, and financial well-being of our colleagues and their families; protecting employment – implementing a Covid related ‘zero’ redundancy policy; ensuring we were always open for key workers and investing in industry leading guest safety and giving back to the communities we serve.’
He added: ‘As we now emerge from the restrictions imposed by the pandemic, we are prioritising growing the business, creating new employment opportunities and continue to develop our Net Better Off Programme for our colleagues.’
Ten per cent of the group’s annual profits went to the Peter Vardy Foundation.
The charity supports children and young people across Scotland and the world.
How did other dealer groups got on in 2020?
- Glyn Hopkin posts improved profit in 2020 despite being hit by pandemic
- Rybrook Group announces reduced pre-tax profit of £3.25m for 2020
- Arnold Clark posts mighty profit of £156.5m for 2020 and now calls itself a ‘stronger’ and ‘leaner’ business
- Donnelly Group benefits from furlough scheme to make £1.46m profit in 2020 after previous loss of £2.66m
- Bells Motor Group posts improved pre-tax profit of £1.4m after claiming nearly £400,000 in furlough cash
- Motorline doubles 2020 pre-tax profits but relies heavily on government furlough cash, claiming £7.1m
- Jardine Motors Group suffers catastrophic year as £8.3m operating profit slides to £9.8m loss despite £12m-plus furlough support
- Trade Centre Group’s pre-tax profit drops by 58 per cent to £7.5m for year, thanks to pandemic
- Furrows enjoys 38 per cent profit rise after being given more than £1.5m of furlough grants
- John Clark Motor Group’s pre-tax profit more than doubles to £6.25m despite drop in sales
- Bentleys Motor Group swings from loss to profit – helped by furlough handouts
- Williams Group’s pre-tax profit soars by 114 per cent to £6m helped by £5m-plus in furlough support
- Lookers 2020 results show £14.1m profit as it emerges from turbulent year as ‘a better business’
- WR Davies notches up record year as nearly £1.5m in furlough cash helps it through pandemic
- Caffyns’ pre-tax profit soars by nearly 1,300 per cent, thanks to £1.3m in furlough grants
- Johnsons Cars pre-tax profit soars to £3.2m from £632,000 during ‘turbulent year’
- Vertu Motors: ‘Impressive’ results show group made £24.6m profit last year – ahead of all predictions