Accounts recently published via Companies House show that the Plymouth-based retailer made a loss before tax of £490,879 in the 12 months to the end of December 2024.
The result represents a decline of more than 52% on last year’s pre-tax profit of £1.03m, which was itself down more than 80% on 2022.
Bosses have pointed to a ‘difficult new vehicle market’ and ‘ongoing inflationary cost pressures’ as major factors behind the slump, in comments which echo similar sentiments seen throughout the industry.
The documents also reveal that turnover dipped from £270.3m to £268.9m, with EBITDA (excluding vehicle depreciation) dipping from £3.6m to £2.6m.
The tough period was capped by the fact that the dealer group’s net assets declined to £31.7m, compared to £32.3m at the end of 2023.
The firm was also hit by rising staff costs, despite workforce shrinking by six employees to an average 595.
Throughout the year, staff costs totalled £21.61m, compared to £20.54m in 2023, but directors did receive less than last year, with remunerations coming in at £707,392.
Writing in the accounts, Boss Peter Vosper said: ‘The company has had another challenging year with a difficult new vehicle market and ongoing inflationary cost pressures.
‘The company made a trading loss before tax of £0.5m (2024 – profit of £1.0m) and the balance sheet position decreased at year end with net assets of £31.7m (2023 – £32.3m).
‘Our interest charges remained high at £2.3m (2023 – £2.0m) due to continuing high levels of new vehicle interest bearing stock.
‘This result has been adversely affected by a contracting private retail new car market down 8.7% in 2024 and within that for us a poor overall electric vehicle performance as we awaited new products.
‘According to the SMMT Annual New Car Report only one in ten private buyers chose an electric vehicle in contrast to the growth in electric vehicle registrations seen in the fleet sector.
‘This in our opinion is representative of the tax incentives being offered to businesses but not to private consumers.
‘Despite the government reversing the decision on the petrol and diesel car ban back to 2030 with the exception of hybrids that still have until 2035 there is not enough being done convince the average UK consumer to purchase an electric vehicle.’
Despite recent difficulties, directors say that things are likely to look better by the time 2025’s accounts are published next year.
The firm is said to have traded profitably to the end of June, with EV sales continuing to rise.
The firm has also recently completed the purchase of County Garage (Barnstaple) Limited, giving it an increased presence in North Devon.
However, concerns do remain about ‘general economic headwind’ including the hike in employers’ National Insurance contributions.
Vosper added: ‘To the end of June 2025 we have traded profitably and the private retail car market has grown including sales of electric vehicles with some more competitive retail offers.
‘Despite this we remain concerned about the general economic headwinds including significantly increased costs for employers’ national insurance and living wage along with interest rates and inflation remaining high.
‘Used car volumes are up again for us but margins remain under pressure. Aftersales continues to perform in line with our expectations and we are focussing our efforts on customer retention strategies.
‘On May 27, 2025 the parent company acquired the whole share capital of County Garage (Barnstaple) Limited.
‘This acquisition provides the wider group with a strategic location in North Devon with a well established team and shared family values.’
