Group 1 Automotive’s UK division noticed a 94% income improve and greater than doubled its gross revenue within the first half of 2025, pushed by sturdy retail quantity progress and rising profitability in finance and aftersales.
Group 1’s H1 UK revenues rose from $1.6 billion (£1.18bn) to $3.1bn (£2.3bn). On a continuing forex foundation, revenues have been up 89%, reflecting important enhancements throughout all departments.
Gross revenue within the UK jumped 109.6% to $424 million (£313m), accounting for round 45% of the group’s whole gross revenue improve for the interval.
Gross margin within the UK improved from 12.6% to 13.6%, aided by a shift in gross sales combine and improved efficiencies in aftersales.
The enterprise has been rolling out a restructuing programme within the UK since August final 12 months, which noticed 370 jobs in danger as of the top of June this 12 months.
Group 1 has been integrating Inchcape UK’s dealerships into the group following a £346m deal first introduced in April final 12 months.
The enterprise has reviewed all of its company assist capabilities”to make sure that we stay in a powerful place to serve our clients and OEM companions successfully”.
A spokesperson for Group 1 gave some extra context round reshaping the UK enterprise: “In step with different retailers, we proceed to face price headwinds referring to tax will increase introduced within the final Funds, and in response we’ve recognized alternatives to take away duplication, streamline processes and decentralise sure roles to drive efficiencies throughout the enterprise.”
New and used gross sales practically double
Retail gross sales of recent automobiles within the UK elevated 90% to 32,960 items, whereas used car retail gross sales climbed 89.5% to 41,580 items. Wholesale used quantity greater than doubled, rising 141% to 13,506 items.
Common promoting costs additionally elevated. New car retail common gross sales value (ASP) rose to $45,327 (£33,475), up 2%, whereas used car ASP reached $30,261 (£22,348), up 7.4%.
Gross revenue per unit for brand spanking new automobiles elevated by 5.4% to $3,243 (£2,395), whereas used unit profitability dipped barely to $1,336 (£987), down 3.2%, indicating greater volumes have been partially offset by tighter margins.
Aftersales and F&I drive profitability
Group 1’s UK elements and repair income greater than doubled, growing 105% to $323.7m (£240m), with gross revenue climbing 107% to $185.1m. Gross margin in aftersales rose to 57.2%, up barely from 56.6% final 12 months.
Finance and insurance coverage revenue within the UK soared 135.5% to $79.5m (£59m), with gross revenue per unit rising to $1,067 (£788), a 24.2% improve. The enterprise stated that F&I within the UK has been a standout contributor to total revenue enchancment.
Restructuring prices
Regardless of file income and revenue, promoting, normal and administrative (SG&A) bills within the UK greater than doubled to $344.3m (£254.2m), representing 81.2% of gross revenue, up from 79.5% in H1 2024.
Group 1 famous that $18.7m (£14m) in restructuring fees have been recorded within the UK within the first half, together with web site closures and workforce realignment.
Two Mercedes-Benz dealerships have been closed throughout the second quarter as a part of ongoing efforts to optimise the group’s UK portfolio.
Additional price optimisation is anticipated by way of the rest of the 12 months, though the group described future restructuring exercise as “much less important”.
Market stays difficult however outlook enhancing
Group 1 president and chief govt Daryl Kenningham stated the UK market stays difficult, citing business volumes and margin stress because of the ZEV mandate.
He stated: “Integration efforts are largely full and most UK manufacturers are performing to expectations, with constructive momentum anticipated within the second half of the 12 months.
“SG&A leverage enchancment stays a spotlight within the U.Ok., with room for additional positive factors.
“We’ll proceed to pursue balanced progress whereas executing opportunistic share repurchases.
“Moreover, we’re actively reviewing underperforming shops and growing acceptable plans.”
