Springfield looks to expand in North East

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Springfield Cars in Washington Tyne & Wear  is looking for franchise opportunities in the North East in 2014.

Its latest results filed with Companies House show a sharp reduction in turnover in 2013 following the sale of four Honda dealerships the year before.

The company, which now operates Suzuki, Fiat and Citroen franchises and a bodyshop and fleet centre, saw pre tax profits decline 57.7% to £463,430 on turnover down 41.6% to £43.2m in the year to 31 December 2013 following the disposals.

But exclude the discontinued Honda businesses and operating profits increased by 265% to £523,430 for the period.

Springfield said a recovering economy coupled with low interest rates resulted in a buoyant sales environment.

Its Citroen sales rose 6.4%, Fiat was up 20.6% and Suzuki increases sales volumes by 33%.

Overall, the group’s retail sales were up 8% on the prior year with gross margins of 1%.

Used vehicle volumes rose 2% compared to 2012 with gross margins increasing by 3% as it improved its stock mix and stock turn.

Springfield said there was pent up demand for fleet sales and it saw sales to local businesses rise 35% in volume terms for the period.

Having disposed of properties the company had reduced its debt and said its gearing group extremely low.

Springfield said its strategy was to focus with its current brands in the current market while identifying franchise opportunities in the North East.