8:30 am, May 7, 2025
Bosses at CarSupermarket.com say they are ‘pleased’ with the firm’s financial performance, despite profits being slashed in half last year.
New accounts posted for parent company Motor Depot Limited show that the business made a pre-tax profit of £1.1m in the year ending September 30, 2024.
That figure is a hefty 54.2% down on 2023’s £2.4m but directors say that a strong end to the year represents a sign of things to come for the second-hand specialists.
According to the accounts, things got off to a rocky start in 2024, with Q1 bringing a 10% dip in used car prices, which majorly impacted the business.
That was followed by significant headaches around vehicle sourcing, which had a negative impact on profitability throughout Qs 2 and 3.
It was not until Q4 that the business saw ‘sustained growth and a notable increase in profitability’ which bosses are now backing to extend into 2025.
Despite the struggles, the accounts, recently published via Companies House, show that Motor Depot’s turnover actually rose by 14% to £387.7m last year.
There was also a 20.4% rise in retail sales with the firm selling an impressive 23,256 vehicles in the period covered by the accounts.
However, difficult market conditions meant that gross margins fell by 0.8% and the firm took the decision to axe its Hull branch as part of a drive to ‘improve efficiency’.
Following the closure, which did not require any redundancies, CarSupermarket.com ended the year with 10 sites, located mainly in the north of England.
In a statement included in the accounts, director Phillip Wilkinson, said: ‘The company demonstrated substantial growth during the financial year ending 30 September 2024, despite a slight decline in overall profitability.
‘This performance reflects the directors’ and senior management’s strategic decision to prioritise growth as a key objective for the year.
‘The return to growth was particularly gratifying given the challenges faced during the first half of the year.
‘Total revenue increased by 14% compared to the previous year, driven by growth in unit sales.
‘Despite external challenges such as market price fluctuations and regulatory changes, the company successfully improved its financial performance in the second half of the year.
‘During the year, the company made the strategic decision to close its Hull branch, consolidating operations within the same geographic area to improve efficiency.
‘The closure took place ni January 2024, with staff reassigned to nearby sites, ensuring no redundancies were necessary.
‘The directors are pleased with the year’s results, particularly the return to growth, and commend the senior management team for their focused efforts.
‘Despite early challenges, the company’s strong second-half performance and strategic actions have positioned it well for future success.’
Like most companies throughout the industry, Motor Depot were hit with increased overheads, with staff costs rising by 12% to £22.16m. Directors’ remunerations totalled £24,000 – the same amount as in 2023.
Directors did not recommend a final dividend. As of the end of its financial period, September 30, 2024, Motor Depot Ltd employed 544 people.
Image: CarSupermarket.com
