Glyn Hopkin sees profits fall 47% to £7.5m in ‘challenging year’

Last year proved to be a challenging year for Glyn Hopkin with pre-tax profits down 46.8% to £7.5m on turnover up 15.2% to £521m.

In results filed at Companies House it said profitability had been hit by vehicle supply shortages and despite this it was pleased with the result given that 2021 had been an “exceptional  and highly abnormal year not just for the group but the motor trade in general with consumer demand ‘far outstripping” the supply of vehicles during the pandemic.

“This led to significant but temporary increases in both new and used vehicle margins. In addition, the sector received significant benefits from government schemes and assistance in 2021.

“However, supply shortages which carried on through 2022 have continued to lead to the absence of pre-registration activity by car manufacturers which has helped profitability.”

It said that despite low new car market volumes it had increased turnover over the past three years from £368m in 2020, £452m in 2021 to nearly £521m in 2022.

It said that Nissan, Kia and MG all performed very strongly during the year. During Q4 last year a new MG business was opened at Bedford and in September it bought a Nissan dealership in Mill Hill from Westway.  A further Kia dealership was added at East London in June 2022. A third Kia dealership was opened in Colchester in May 2023.

On it Stellantis brands it said: “Stellantis are presenting a new dealer agreement to be in place across all their brands in June 2023. This has allowed the Group to re-evaluate all current Stellantis franchises with a view to retaining the most successful Fiat dealerships within the Group when the new agreements take effect.”

The Group has also achieved good results from the Renault and Dacia franchises, all of which were profitable in 2022.