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Waylands Automotive tackled significant cost headwinds in 2023 with high inflation, interest rates and energy costs.
The company delivered pre-tax profits down 19.4% to £2.5m on turnover up 19.3% to £200.9m.
The group now operates Volvo, MG and Kia dealerships in Reading, Newbury, Swindon, Oxford, and Bristol and acts as an agent for Polestar for the South West of England.
“The group continued to experience significant cost headwinds during the period, particularly across energy, and through a higher interest rate environment, both impacting profitability for the year,” said CEO John O’ Hanlon (pictured) signing off accounts filed at Companies House.
But it added that trading in 2024 had improved significantly. “Trading has performed in line with expectations throughout 2024 with a marked strengthening from the final quarter of 2023. The directors are forecasting good levels of probability in the forthcoming year.”
It commented on the hit EV values took in Q1 and the overall reduction in used car values in the final quarter of the year, which hit margins.
“During the period particular challenges were experienced during Q1 across used electric vehicles, driven by new car pricing activities of particular OEMs, and is expected to be an exceptional event.
“Demand led pressure in Q4 did also see significant reductions in used vehicle values, however these have stabilised in Q1 of 2024 as expected,” it said.