City West Country Mercedes 2023 profit tumbles
08 January 2025
Mercedes-Benz retailer City West Country saw profit tumble from £8.5m to £568k in the year ended December 2023, the first year of Mercedes-Benz agency sales. Revenue was also slashed from £349m to £211m – but cost of sales fell from £313m to £184m.
Return on sales fell from 2.5% to 0.3%.
“The company… embraced the move to the agency model introduced by Mercedes-Benz,” said the directors.
“There was an anticipated decrease in turnover due to this change in franchise model and a reduction in gross profit earned, which was reflective of the changing used car market conditions post Covid 19.
“The directors consider the financial performance in 2023 to be satisfactory considering the wider economic climate, the extremely competitive UK motor retailing marketplace and the general cautious outlook adopted by consumers.”
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