Perrys Motor Gross sales has reported a sturdy monetary efficiency for 2024, delivering revenue will increase throughout key areas regardless of a dip in general income, ongoing provide challenges, and stress from rising payroll prices.
In year-end buying and selling outcomes, the AM100 dealership group posted a 3.8% enhance in gross revenue to £93.3 million, whereas working revenue rose to £6.1m, up from £5.2m in 2023. This got here regardless of a 3.2% decline in group income to £768, primamrily attributed to a discount in fleet gross sales.
Commenting on the outcomes, Perrys managing director Darren Ardron mentioned: “Total, we had been happy with the outcomes for 2024. The primary half was good. Volumes and margins held up and the group achieved a really sturdy aftersales consequence, regardless of the headwinds that the broader trade skilled. Q3 noticed extra stress on new retail items and the autumn in used automobile values added additional stress to margins.”
The group reported notable progress in used car exercise, with used automobile transactions rising 7.6% to 17,201 items and used business car gross sales surging 20.5% year-on-year. Aftersales income grew 8.1% to £93m, serving to to offset difficulties within the new automobile market, significantly round Ford and Vauxhall, the place demand remained subdued.
Payroll prices elevated by 6.5% amid a sector-wide expertise scarcity, though the group made effectivity features in different areas – together with lowered utility payments due to falling vitality costs. Financing prices additionally eased, with rates of interest falling over the yr in keeping with base price reductions, ending 2024 at 4.75%, down from 5.25%.
Ardron highlighted the group’s dedication to employees retention. “Throughout the yr, the group launched a number of initiatives geared toward enhancing employees retention, specializing in persevering with to enhance the work-life steadiness of our colleagues with an goal of creating Perrys an employer of alternative,” he mentioned.
The group mentioned it added Omoda and Jaecoo franchises to its portfolio, too, in addition to including some present franchises into current websites to focus extra on a multi-franchise technique, permitting for larger aftersales alternatives.
Regardless of market challenges, Perrys completed 2024 with internet property of £75.2m and has began 2025 strongly, reporting above-budget buying and selling by way of March.
New automobile and business car gross sales remained resilient, though Ardron acknowledged that top stocking costs had affected general business car profitability.
Used automobile margins have proven enchancment, regardless of persistent provide constraints, and the aftersales division continues to carry out nicely with progress in retail hours bought and improved restoration charges.
Wanting forward, the group is sustaining a decent deal with price management, significantly within the wake of April’s rises in Nationwide Insurance coverage and the Nationwide Minimal Wage. Working capital administration can be underneath shut scrutiny as a result of excessive rates of interest and elevated producer car provide.
“We’re very a lot trying ahead to persevering with with these optimistic uplifts all through 2025, with a robust begin to the yr already skilled,” Ardron added.
