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Slow trading conditions and supply shortages caused by WLTP saw new car sales volumes decline 17.9% at Vindis Group in 2018.
The group saw turnover fall to -8.4% to £381.8m compared to £416.9m in 2017 with pre-tax profits of £1m compared to £3.4m the year before, according to accounts filed at Companies House.
The 2017 profit figure included an exceptional item of £1m profit on the sale of land and the majority of the £35m fall in turnover was due a reclassification of fleet business.
Vindis Group was particularly hit with Audi on WLTP as it holds five dealerships with the brand.
“As demand continued to slow, trading conditions during 2018 were particularly challenging, supply issues as a result of the new WLTP emission testing regulations were additionally problematic.
“This was particularly with the Audi brand and as a result total new vehicle volumes fell by 17.9% on the preceding year.
“However all manufacturer targets were met but this was only achieved by significant self-registration of vehicles, enabling us to maximise the brand support monies available.
“This together with stronger underlying margins as a result of supply shortages enabled us to achieve stability in gross margins.”
Vindis said new vehicle turnover fell by 16.7% – it sold 2,200 fewer new cars – and the overall contribution from new cars fell by £1.7m.
While new cars were under pressure, used car demand grew 4.3% with strong margins and the overall contribution increasing by £1.7m.
Vindis said that despite the difficult trading year its strong brand portfolio meant it was well placed to deal with the ongoing economic challenges.
During the year it opened a new Volkswagen Trade Parts call centre in Huntington.