7:33 am, February 29, 2024
Supercar and classic car dealer Tom Hartley Junior increased profit last year to a staggering £20.1m from the sale of just 77 cars.
Despite the number of cars he sold in the 11-month period ending March 31, 2023, dropping from 102 to 77, Hartley Junior still saw profit before tax rise by £8.8m.
Turnover for the Ashby-de-le-Zouch-based business also increased to £181m, accounts just filed at Companies House reveal.
Gross profit margin per car was up too at 13.5%, an increase on the 11% achieved the year before.
The car dealer specialises in exotic high end models and his current stock includes a 1962 Ferrari 250 GTO. Recently, RM Sotherby’s sold a 1962 Ferrari 330LM/250 GTO at auction for close to £41m.
Other models for sale include a 1965 Ferrari 275 GTB, a 1959 Ferrari 250 GT LWB California Spyder Competizione, Ferrari F40, McLaren P1 and a Porsche 918 Spyder.
In its annual report, Hartley said: ‘The principal activity of Tom Hartley Jr Limited is the acquisition and sale of classic cars alongside an inventory of modern supercars.
‘The business model is very different to most competitors due to the fact that the company aims to buy most of its inventory, compared to just brokering cars like many others who operate at this end of the market.
‘This enables Tom Hartley Jr Limited to potentially earn a greater gross margin as they bear the full risk, however due to this inherent risk element the director’s market knowledge on the particular cars and gut feeling of the market is very important.’
Speaking exclusively to Car Dealer about the stellar results, Hartley Junior praised his staff.
He added: ‘It was a very good year and I’m very proud of my small but extremely capable team.
‘Our turnover was in fact well over £200,000,000 as sales were also concluded on cars that we didn’t have in stock but received commission from.
‘We put far more effort and investment into our research, preparation, and presentation than our competitors, but cars don’t sell themselves.
‘My current focus – in addition to steering the ship – is to complete the development of our new showroom in the Cotswolds and at that time, I will be looking to scale the business and add other key individuals including extra sales staff and a dedicated buyer to the team.’
Hartley Junior also thanked his customers, many of whom returned to him to buy again, saying the ‘loyalty does not go unnoticed’.
Previously sold stock on Hartley Junior’s website includes several Ferrari F40 models, a Ferrari F50, Lamborghini Miura and a 1962 Ferrari 250 GT SWB among many others.
He added: ‘As all my clients know, I am passionate about my business and how we conduct our work.
‘It is vitally important to me that the business is the absolute best at what it does within the marketplace, and that has always meant establishing the same reputation around the world as the one we have worked hard to build in the UK.
‘As a business we strive to deliver a world-class service to all of our clients and never deviate from only selling the very best cars.’
At the time the accounts were produced, the firm had £72m tied up in stock and £32m in the bank.
Tom’s dad, Tom Hartley, is due to appear at next week’s Car Dealer Live event on the luxury car dealer panel.
The event takes place next Thursday (March 7) at the British Motor Museum at Gaydon and is packed with sessions for the motor trade. Tickets are available on the event website.
