Profitability under pressure in 2018
23 June 2019
Three retail groups announcing their annual results this week have seen profitability come under pressure.
Hendy Automotive’s 2018 profit before tax dropped to £3.6 million with a turnover of £556.3m, against £5.0m in 2017 on £532.8m turnover. During 2018 it bought the £15 million-a-year Seward business adding Suzuki and Renault/Dacia, and its latest accounts show that in March this year it agreed to pay £21 million for the Westover business, which should see the 2019 turnover pass £1bn.
Ford retailer TC Harrison which also has a JCB operation and a profitable contract hire business saw its overall profits drop slightly from £2.1m to £2.0m on a turnover that increased from £287.7m in 2017 to £304.8m last year.
And after a year of transition as Vauxhall was incorporated into the PSA group, Drive Motor Retail reported a significant profit drop in 2018, down to £1.7m from £6.7m in 2017. Turnover for the group remained almost flat at £219m for the year.
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