11:05 am, October 3, 2024
Profits swung from a bumper year in 2022 to loss in 2023 for Car Giant, it reports, due to revaluation of its land.
The London-based car dealer reported operating profits were up for the year to £31.3m compared to £23.5m the year before, in its latest set of accounts.
However, it explained that while in the previous year it had an £18.6m boost from revaluing land, in 2023 it had a deficit of £50.6m
The company said: ‘The pre-tax loss of £22.4m (2022: pre-tax profit of £42.3m) is after a revaluation deficit for investment properties of £50.6m (2022: revaluation surplus of £18.6m).
‘Total turnover has increased to £491.2m (2022: £397.9m). The company has net assets of £425m (2022: £440.1m) at the reporting date.’
Directors will not be taking a dividend but remained positive on the outlook for Car Giant in the report.
It reads: ‘Car Giant’s extensive development plans will further modernise and expand its factories and facilities along with the intensification and development of all non-operational land.
‘The 45-acre Car Giant site has been designated in the new local plan as strategic industrial land with emphasis on expansion due to its immediate proximity to the new HS2 interchange at Old Oak Common.
‘Property values reflected within the financial statements are significantly lower than current market valuations as a result.
‘The designation will however allow our long-awaited expansion to take place.’
Car Giant was named the most profitable independent car dealer in the Car Dealer Top 100, despite operating profit down slightly from the previous year and it dropping nine places in the overall rankings.
Correction: Updated at 17:45 on October 3
