8:10 am, July 26, 2022
Bosses at Rybrook Group say they are ‘optimistic’ about the future after the firm saw its profits soar by close to 90 per cent in 2021.
The Warwickshire-based outfit’s fell in 2020 but accounts published via Companies House show that it bounced back with huge success in 2021.
The year saw the dealer group’s revenue shoot up with an impressive £802.2m of turnover generated, compared to 2020’s £660.5m.
Of that income, £774.3m came from the sale of goods with the remaining cash coming from the provision of services.
As a result of the additional money, the firm was able to increase its pre-tax profits by 88 per cent, jumping from £1.4m to £11.8m.
The accounts also show that Rybrook significantly reduced the amount it claimed in furlough cash, as lockdown measures were eased throughout the year.
In the 12 months up to December 31, 2021, the group claimed £998,000 from the government’s Coronavirus Job Retention Scheme, compared to £6.6m in the previous reporting period.
It was also a period of change for Rybrook’s dealerships with the group’s Jaguar Warrington site closing at the end of June before the opening of a new Volvo dealership in Bolton the following month.
The outfit also acquired a new location for its BMW Warwick dealership and began renovation work on the site.
Rybrook invested £13m into developing the site, as well as fitting out the new Volvo dealership in Bolton. The work was partially paid for by selling a storage compound in Wolverhampton for £1.7m.
‘Imbalance between supply and demand resulted in improved car margins’
Included in the accounts was a statement from director, Jatinder Nurprui, who said explained how supply chain issues had impacted the whole industry throughout 2021.
He said: ‘The UK car market continued to experience abnormal conditions over the course of 2021, with further disruption from Covid-19, and new car availability severely constrained by the global shortage of semiconductors and other supply chain issues,on the one hand; and pent up customer demand augmented by customer savings during the pandemic and the shift away from public transport on the other.
‘The new car market was marginally up on the prior year but remained significantly below pre pandemic levels. Used Car volumes were up 11.5 per cent year-on-year (5.2 per cent below 2019).
‘The imbalance between supply and demand resulted in improved car margins, particularly in the used market which saw a strong appreciation in values over the course of the year.
‘During the whole of 2021, the group received continued assistance from the Government’s Covid-19 pandemic support measures in the form of retail sector rates relief.
‘Although on a greatly reduced level compared to the prior year, the group also utilised Coronavirus Job Retention Scheme when our operations had to be scaled down significantly during the UK’s third Covid-19 national lockdown.’
He added: ‘The group has made a strong start 2022. The Ukraine war and Covid-19 shutdowns and China have exacerbated supply chain issues and this, along with the cost of living crisis, presents uncertainty going forward.
‘However, despite these challenges, the directors are optimistic about the medium term prospects of the group.’
