Research has found that the variety of AM100 motor retail groups which did not record a pre-tax profit in FY2022 was double the number that made losses in 2021, at six.
AM has now launched the 2023 AM100 Report, studying the UK’s largest and most influential automotive dealers and their latest financial results, and it is accessible here free to read in a digital format.
It reveals that although the general return on sales of the AM100 declined year-on-year to 2.2% from 2.4%, the overwhelming majority of AM100 dealer groups achieved good returns, with earnings fuelled by demand-led automotive markets and cautious cost controls.
In a sign of the improving supply of latest vehicles, the AM100’s total revenues rose to £72 billion.
The research also found an increasing diversity of franchised portfolios for some, particularly with adoption of EV-focused brands equivalent to MG and BYD.
After some consolidation or break-ups of a couple of major groups, the AM100 also has 4 latest entrants this time. See the report for details.
It’s great to see the sector firmly back into growth mode after the turmoil of 2020 and 2021. While acquisitions typically make the headlines at AM-online, it’s clearly organic growth that comes through in the info collated to arrange this 2023 AM100 report. And while some dealer groups have been rationalising their portfolio of franchised outlets, others have been multi-franchising steadily and recruiting to bolster their workforces.
Yet again, I’m delighted that the motor trade specialists at accountancy firm BDO have partnered with AM for the AM100 research. BDO’s regional managing partner Steve Le Bas, newly promoted head of motor retail Chris Bond and audit director James Evans have been analysing statutory accounts from 2022 and crunching the numbers to watch the financial output of the AM100. Where 2022 accounts weren’t yet available from some groups, together we worked to agree turnover estimates.
We’ve built an image of the industry’s state of health in 2022, while many are set to shut 2023 with even higher levels of sales.
On this special issue you’ll see our findings, while the principal turnover table is in the back of the report.
This Article First Appeared At www.am-online.com