12:22 pm, January 29, 2025
US-based car dealer Group 1 Automotive increased UK profits by 36.6% to £120m ($150m) in 2024 following the successful purchase of a series of dealerships, with a huge boost in Q4.
For the year, revenue was up 36% to $4.2bn – an increase of $1.1bn from 2023.
Globally it reported that it achieved record revenues of $19.9bn (compared to $17.9bn for 2023) as well as record new and used car sales of 413,364, up 13%.
In 2024, Group 1 announced it was purchasing 58 dealerships from Inchcape Retail.
It also completed the purchase of Soper BMW Lincoln, which the firm believes will add around $125m (£94m) in income.
These additional dealerships are estimated to double the Group’s UK footprint.
It’s unsurprising then that in the final quarter of 2024 the group saw profits more than double compared to 2023, up 103% to $183.3m (£147.6m).
In a statement it said: ‘During the current year, the company has successfully acquired and integrated dealership operations with total expected annual revenues of approximately $3.9 billion.
‘We remain focused on quickly and efficiently integrating our acquisitions into our existing operations to drive incremental value creation for shareholders.’
Group 1 also gave details of the cost of integration with Inchcape, particularly moving it onto their own DMS.
It said: ‘As a result of these restructuring and integration actions, the Company recognized $16.7 million in restructuring charges in the current quarter.
‘We expect a significant number of restructuring activities to be completed by the end of the first quarter of 2025.’
It was previously criticised by ex-staff members with rumours of job losses at the newly acquired Inchcape emerging.
The number of retail new vehicles sold in the year was also up 40.5%, to 46,015 with an additional 13,258 vehicles sold.
For used vehicles, this was up 34.9% to 56,717 with an extra 14,678 sold.
Average new price was up 3% while used vehicles were down 2.2%, however profit on both were down 14% and 0.5% respectively.
Group 1 president and CEO Daryl Kenningham commented: ‘Our UK team is better positioned today than at any time in our history, with exceptional brand partners and a portfolio of dealerships that provide us geographic diversification across a broader UK market.
‘Our ongoing restructuring actions to integrate Inchcape Retail stores which began in the fourth quarter of 2024 will ultimately position us to capture the full value of this acquisition.’
