Group 1 has posted a 36.6% boost in gross profit performance across its UK business over the past 12 months to £451 million.
UK group revenues also increased, up by 36% to £3.3 billion over the identical period.
The business is now nearing the tip of a $16.7 million (£13.4m) restructure of its UK business following the £346m acquisition of Inchcape Retail last yr.
The US-based business has posted its results for 2024, where it posted a rise for total group revenues by 11.7% to $19.9 billion (£16bn) and an improved gross profit performance up 7.3% to $3.3bn.
Group 1 has 259 dealerships across the US and the UK.
Recent retail sales increased by 40.5% last yr within the UK to 46,015 units, while used automotive retail sales increased by 35% to 56,717 units.
Used automotive gross profit per unit saw a slight drop of 0.5% to £1,148, while pressue on latest automotive margins was higher with a drop of 14% right down to a median of £2,557 on gross profit per unit sold.
Group 1’s aftersales performance within the UK offered the largest boost to its gross profit performance, up by 47.8% to £200m.
Daryl Kenningham, Group 1 president and chief executive, said: “Our UK team is healthier positioned today than at any time in our history, with exceptional brand partners and a portfolio of dealerships that provide us geographic diversification across a broader UK market.
“Our ongoing restructuring actions to integrate Inchcape Retail stores which began within the fourth quarter of 2024 will ultimately position us to capture the complete value of this acquisition.”
The UK specific a part of Group 1’s financial results said the addition of 54 Inchcape Retail locations added scale and geographic diversification for its UK operations, with key hubs now established within the Midlands, the Northwest of England and Wales.
It said integration activities began immediately following the acquisition of the Inchcape sites, including the initiation of a UK wide restructuring plan consisting of “workforce realignment, strategic closing of certain facilities and systems integrations”.
Group 1 said “significant progress” has been made in switching over to Group 1’s preferred dealer management system (DMS) in comparison with the legacy systems the Inchcape Retail sites were using.
It said switching to a distinct DMS, which generally is a complicated process, “hampered our operations for a time period as we accomplished the in-store conversions”.
These restructuring and integration actions led to the £13.4m in restructuring charges in Q4 last yr.
Group 1 is expecting a “significant number” of restructuring activities to be accomplished by the tip of Q1 this yr.
This Article First Appeared At www.am-online.com
