The parent company of used car showroom chain the Trade Centre Group saw its pre-tax profit rise by six per cent to £20.4m last year.
In its annual report and consolidated financial statements for the year ended November 30, 2019, which were filed with Companies House today (Sep 3), Bailey Family Investments reported a slight dip in turnover from £257.4m to £256.5m, although its earnings before interest, taxes, depreciation, and amortisation (aka Ebitda) went up by seven per cent to £25.2m.
The Trade Centre Group shifted 39,939 cars last year – a five per cent decrease on 2018’s figure of 41,892 – but Bailey, which also operates CanCan Car Finance, said it was aligned to any material changes within the used car market, and that although there was strong competition it was in a good position to build on its success.
It doesn’t have any qualms about Brexit either, adding: ‘The impact of Brexit within the UK used car market continues to remain uncertain, although the impact to date has been limited. Based on current information, the directors believe that Brexit will not have any fundamental impact on current or future trading for the next two years.’
However, it acknowledged that the coronavirus pandemic had led to ‘significant uncertainty in the UK economy’, adding that it could threaten ongoing business operations, demand for vehicles and its forecast future financial performance, but said the directors would ‘continue to monitor the potential impact and take proactive steps to mitigate future stress’.
The Trade Centre Group operates as the Trade Centre Wales in Neath, Merthyr Tydfil and Abercynon and as the Trade Centre UK in Wednesbury, Coventry and Rochdale, although the Rochdale branch opened in December, after the year-end. It is also planning to open a showroom in Rotherham.
It is the primary investment for Bailey’s, which also has a commercial property portfolio of five properties that last year brought in an aggregate income of £3.8m.