Glyn Hopkin sees profits fall 46% to £4m with increased turnover

Glyn Hopkin turned in what is now a familiar pattern for dealer 2023 financial results with increased turnover and reduced profits.

Pre-tax profits fell 46% to £4.04m on turnover up 7.6% to £560.6m. In results filed at Companies House it said last year was tough due to inflationary pressures on utility costs, rising interest rates, weakening consumer confidence and sluggish economic growth which turned negative in the final quarter.

It added that the prior year was “abnormal” for the motor trade in general due to unusually high consumer demand continuing to outstrip the supply of vehicles in the aftermath of the pandemic.

“The fall in used car prices from an unsustainable high was particularly noticeable in Q4 2023. Inflationary pressure, particularly with respect to utility costs, had a negative impact across the motor trade sector in 2023.”

It said its Nissan, Kia and MG franchises all performed strongly during the year. During 2023 it opened new MG dealerships at Mill Hill, Romford, Waltham Abbey and Buckhurst Hill. In Q 1 2024 a further MG dealership was opened at Watford.

“The group is now one of the three largest MG dealer groups in the UK. With regards to Nissan, the group consolidated its acquisition of the large Mill Hill dealership purchased in September 2022. A third Kia dealership was added at Colchester in 2023.

“In the short and medium term a major focus will remain at looking at further opportunities with these three core brands. In addition to Nissan, Kia and MG are also now contributing significantly to the group’s overall profitability.

Glyn Hopkin said it had achieved “acceptable” results from the Renault and Dacia franchises and it opened a new Suzuki dealership in St Albans during 2023, relocating from Watford.

During 2023 it parted company with Stellantis brands Fiat, Alfa Romeo and Jeep on grounds of profitability.