12:15 pm, September 9, 2026
Sherwoods Motor Group is eyeing further expansion after delivering the highest profit in its history, with bosses saying they hope to add another site to the business during 2026.
The dealer group recorded a pre-tax profit of £3.29m in the year to December 31, 2025, up 77% from £1.86m a year earlier, while return on sales climbed from 1.74% to a record 2.41%.
EBITDA was also up 57% to £3.90m, with Sherwoods describing the performance as being ‘well above our expectations’ despite continued pressure from the cost of living, inflation and the government’s ZEV mandate.
The result came without the group adding any new sites or franchises during the year, although turnover increased by 28% from £106.7m to £136.5m.
Writing in the firm’s latest accounts, directors said: ‘Despite the headwinds of cost-of-living pressures, general inflation, continued political unrest and the difficulties associated with the ZEV mandate the business performed well above our expectations finishing with the highest profit on record and a Return of Sales of 2.41%.’
Several areas of the business also hit new highs during the year, with fleet unit sales increasing 97% to a record level, service profit rising 28% to another record and overhead absorption improving from 75% to 77%.
Used car sales were up a more modest 2.7%, although Sherwoods said that was still its second-best year on record.
The improvement was also reflected further down the accounts, with operating profit rising from £2.16m to £3.58m and profit after tax climbing from £1.37m to £2.45m.
Having achieved the record result from its existing operation, Sherwoods is now looking at opportunities to grow through both new franchises and another dealership.
The directors said: ‘We also will be looking for further opportunities to grow our business both in terms of additional franchises outlets and if the right opportunity arises in 2026 and we would by this time next year like to be able to report a new site to the group.’
The group’s directors’ report adds that it remains on the lookout for ‘other partners to complement our existing portfolio’ as part of plans to grow the business over the medium term.
Sherwoods’ balance sheet strengthened considerably during the year too, with cash at bank rising from £2.14m to £6.38m and net assets increasing from £7.41m to £9.85m.
That gives the group confidence heading into what it expects to be another challenging year, although bosses pointed to pressure on costs, high interest rates and consumer uncertainty as continuing headwinds.
They added: ‘We know 2026 is going to be tough with continued pressure on costs, interest rates still high customer uncertainty and alike but we have a strong well performing business and a robust balance sheet and will be more than able to ride out any storms.’
Picture credit: Google Maps/Sherwoods Suzuki Gateshead