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Perrys Group saw profits fall 69.4% to £3.66m in 2022 on turnover up 7% to £643m in what it described as a “tough trading” environment.
The performance was impacted by rising interest rates and used car supply issues and the withdrawal of government support post pandemic.
Operating profit before exceptional items was £5.2m down from £9m in 2021. This represented a return on sales of 0.8% versus 1.5% in 2021.
The group said it has made a good start to 2023, performing ahead of expectations in the first half.
Like other dealers, it continues to face challenges with recruiting staff, particularly technicians, which is affecting top line service performance.
It said trading conditions have become tougher since the start of July, but the directors are confident the group is well positioned to deliver a budget performance for 2023.
It added that new car supply has improved but demand is being affected by consumer confidence, whilst used car performance remains strong and the group is still retaining good margins.
Darren Ardron, managing director of Perrys, said: “We were pleased with the overall results in 2022 which was mainly affected by a tough middle period and some challenging conditions with some of our manufacturer partners. Q4 was very strong for the group, and we entered 2023 in good shape.
“Major focus has been placed on some of our non-sales operations which continue to help contribute towards the overall group results.”
Key figures
- Revenue increased by 7% to £643m
- Gross profit increased by 3.5% to £84.1m
- Gross profit increased to £84.1m in 2022 from £81.2m in 2021
- Gross margin reduced from 13.5% in 2021 to 13.1%
- Group operating profit, before exceptional items, of £5.1m was down from £9.0m in 2021
- The group generated positive operating cash flows in 2022. The group remained in a net cash position of £1.2m at 31st December 2022
- Group net assets increased to £78.2m, up from £76.6m in 2021.
- The group met all its covenant tests in the year