Williams Motor Group turned in its third most worthwhile 12 months in its historical past in 2023 regardless of financial headwinds.
Pre-tax earnings fell 15.7% to £13.5m on turnover up 1.4% to £543.9m within the face of “significant headwinds” of provide disruption, excessive power prices, double-digit inflation and rising rates of interest.
The group mentioned margins on new vehicles – it holds BMW, Mini, Jaguar and Land Rover franchises – had lowered as provide exceeded demand.
“General, our new automotive volumes elevated very marginally throughout 2023, while margins for all manufacturers declined all year long as automobile inventories elevated and the retail buyer started to have issues with BEV charging availability and vary nervousness, leading to lowered margins in comparison with final 12 months as provide exceeded demand.
“Used car volumes were marginally lower than 2022, but as a direct consequence of improved new car availability, used car gross margin fell by 21.4%. Used vehicle turnover reduced 2.5% to £330.7m.”
Williams mentioned that in aftersales technicians’ recruitment remained difficult, but it surely elevated direct revenue by 4.6% to £7.1m with a 5.8% enhance in service bought hours.
Bodyshop bought hours grew by 28.9% resulting in a direct revenue of £724,000. Direct elements earnings elevated by 21.7%.
On present buying and selling it mentioned that new automotive registrations had grown by 8.4% within the 4 months to April, dominated by fleet, which had led to decrease margins on new and used vehicles.
“The corporate’s aftersales departments have continued to carry out strongly, benefitting from the continued funding in our folks and services.
“While there are signs that inflationary pressures are abating, the lower vehicle margins result in the company profits being below last year’s levels during the four-month period.”
The corporate is promoting off two properties in Manchester with the deal anticipated to finish within the third quarter of 2023.
