LSH losses grow again; Jemca profit falls
29 August 2023
LSH’s loss-making run continues. In the year ended December 2022, it lost £4.9m, up from the £2.6m loss in 2021. It has lost money in the UK every year since it bought the Birmingham and Manchester market areas from Mercedes-Benz Retail in 2016.
Turnover fell too, from £364m to £327m.
It sold 3,859 new cars, down from 4,704 in 2021 and it sold 6,096 used cars, compared to 8,968 in 2021.
In its results, LSH noted the company has moved to an agency agreement for new Mercedes-Benz and Smart cars, “giving customers a more direct relationship with the respective brands. LSH Auto UK will act as an agent between the brand and the customer, in return for fee income”.
LSH has recently started retailing Chinese new entrant BYD from the second floor of its giant Stockport retailer, as well as a standalone site (an ex-Tesla site) in Birmingham.
Parent company Lei Shing Hong Ltd has committed financial support for it to continue as a going concern until 8 June 2024.
Elsewhere, Toyota and Lexus retailer Jemca saw last year’s profit before tax of £2.9m fall to £529k in the year ended March 2023. Turnover was stable at £314m. The retailer blamed the lasting impact of the pandemic, new car supply shortages and the return of full property tax costs which “significantly impacted operational costs”.
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