Lower margins, EVs and inflationary pressures dent Currie Motors

Currie Motors took a hit in the year to April 2024 with pre-tax profits down 22.5% to £19.5m on turnover up 11.7% to £482.6m.

In results filed at Companies House Currie Motors chairman Joseph Jaffe said the decline could be attributed in the US (turnover £385.3m) and the UK (turnover £97.3m) where it operates to inflationary pressures and the reversion to push marketing with oversupply of new vehicles and “significant downward pressure” on margins.

“In the three years prior to the year under review demand exceeded supply for the first time in living memory due, in the main, to the after effects of the COVID pandemic. That of course results in dramatically improved margins.

“Profits for the year under review were also severely affected by the inflationary pressures on expenses almost across the board.

In the UK, Jaffe said the UK motor operations were down 51% on 2023, which he said was “clearly disappointing”. UK property profits were up by 17%.

“They too suffered from significant downward pressures on margins and inflationary pressures on expenses and costs.

“Trading was not helped buy the obligation to sell electric vehicles, notwithstanding the lack of appetite for these cars among the buying public, particularly at prevailing prices.”

Jaffe said it was “encouraging” that carmakers had taken steps to cut prices in the current trading year.

He added said that while the results were not as good as previously and there were areas where it could improve, he was proud with the way management had faced and dealt with the challenges. He said he expected to see an improvement in processes and results .

“Our chief executive Glenn Pitzer has given excellent leadership, and I am very particularly proud of the culture and commitment that exists in our group on both sides of the Atlantic,” he said.