Steven Eagell Group has revealed profit rocketed 12 per cent during a pandemic hit year as the group posted earnings of £76m for 2020.
Despite lockdowns and the ravages of Covid-19 on businesses, the dealer group clocked up record revenue of £515m – up from £448m in 2019.
Net profit before tax was also at a ‘record level’ for Steven Eagell at £16.8m – a 72 per cent increase on 2019.
In April 2021 the group paid a dividend of £8.6m to shareholders.
The family owned group runs 22 Toyota dealerships and eight Lexus across the South East and East Midlands.
‘The board is extremely pleased with this performance, particularly against a backdrop of trading conditions that were hampered by Covid-19,’ wrote boss Steven Eagell in accounts filed at Companies House.
‘The board feels that the group has achieved a resilient performance with only one third of profits attributed to the sale of new cars and the rest to used car sales and aftersales.’
Steven Eagell is predicting 2021 to be even more profitable as it forecasts ‘another significant YoY increase in turnover and profitability’.
The group says it has been sheltered from falling demand for diesel cars as Toyota and Lexus do not have any diesel passenger cars in their ranges.
Its acquisition of two Lexus and four Toyota dealerships in Tamworth, Solihull, Wolverhampton and Birmingham from the Vantage Motor Group in March 2020 also ‘contributed to the 2020 profit increase’.
To smooth out any bumps in new cars from the two brands it represents, the group has also focussed on developing income streams from a ‘broad base of sources’ including used car sales, accident repair, servicing and parts.
‘The board considers 2021 to be even more profitable,’ added Eagell.
‘This is attributed to retention measures, such as service plans and finance renewal software, also service capacity has been addressed by increasing technician headcount.’
Eagell spoke to Car Dealer Live last year for a video interview you can watch above. You can read the full interview in Issue 58 of Car Dealer.