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HR Owen edged back into the black last year as the prestige dealer group made significant progress hauling itself out of the red.
The group, ranked 33 in the Motor Trader Top 200, posted pre-tax profits of £2.3m for the year ending 31 December compared to a loss of £12.8m in 2005.
Turnover from continuing operations reached around £246m – up slightly from £237m in 2005, reflecting a year of transition for the business as it underwent a massive downsizing to streamline its franchise representation.
The focus on luxury brands has paid off
Nick Lancaster, HR Owen chief executive, described 2006 as “a better year” for the firm and said 2007 would see the group continue to focus on sales growth in the luxury sector.
“We are confident our strategy is the right one and will ultimately provide the best return for shareholders over the medium to long term,” he said.
Pre-tax profits – £2.3m
Turnover – £246m
Pre-tax loss – £400,000
Cash balance – £11m
Turnover – £246m
Pre-tax loss – £400,000
Cash balance – £11m
Number Crunching
Pre-tax loss from continuing operations fell significantly to £400,000 – a huge improvement on the £10.7m loss made in 2005.HR Owen’s cash balance was also much improved at £11m compared to an overdraft of £10.1m for the previous year.
During 2006 the group shed 24 dealerships from its portfolio as part of its focus on specialist and luxury brands.All of the disposals generated a surplus over book value of around £11.8m. Lancaster said a “significant part” of the cash generated is now in the process of being returned to shareholders.
We are confident our strategy is the right one
Lancaster said that new model introductions amongst its specialist brands helped them perform well and claimed margins remained strong.The group’s portfolio now extends to five specialist dealerships for Bentley, Bugatti, Ferrari, Lamborghini, Maserati and Rolls Royce and six sites for Alfa Romeo, BMW/Mini and Volvo.