6:50 am, October 2, 2023
Profit at one of the UK’s largest used car dealerships soared in 2022 to a staggering £42.3m – thanks to a one-off boost from its property portfolio.
Car Giant, based in north-west London on a 45-acre site, typically has nearly 5,000 cars in stock with around 2,000 for sale at any one time.
Accounts just filed for the used car dealer show it banked a £42.3m pre-tax profit on revenues of £397.9m in 2022, thanks to an £18.6m boost from the revaluation of its property investments.
Stripping out the large one-off boost, the firm said underlying pre-tax profit for 2022 stood at £22.4m, down on the £29m made in 2021.
Car Giant owns the land it operates from and rents out parts to small local businesses and some national chains.
The documents show Car Giant’s property portfolio is now worth £348m.
In its annual report, the used car dealer explained the firm’s site has been designated as ‘strategic industrial land with emphasis on expansion’ due to its close proximity to the new HS2 interchange at Old Oak Common.
Car Giant – which employs 511 staff – said the new designation from the local authorities will allow it to press ahead with its ‘long-awaited expansion’.
‘Car Giant has extensive development plans to further modernise and expand our factories and facilities,’ said the firm.
‘Car Giant is located within the very large catchment area of north-west London and we enjoy a competitive advantage by having our entire processing and retail operations within one giant location.
‘Our centralised operations enable us to maximise efficiencies to deliver excellent quality cars at market-leading prices.’
Car Giant said the stock shortages that have affected many large-format used car dealerships in the past few years are beginning to ease in 2023.
Giving a hint to this year’s performance, the firm said volumes have increased by 20% in the year to September leading to ‘significantly improved profitability’.
Despite the bumper profits, the firm chose not to pay a dividend while the highest-paid director received remuneration of £259k.
For comparison, Car Giant’s rivals Big Motoring World made £10.9m in 2022, while listed used car dealer chain Motorpoint made a £300k loss.
Main image: Yui Mok/PA Archive/PA Images
