The bosses of the Hartwell dealer group say the company delivered a “strong financial performance” last year despite a drop in profits of almost 70 percent.

The Oxfordshire-based company’s financial statements, published via Commercial Registershow that the Ford specialist’s pre-tax profit fell below £1 million in the twelve months to 30 November 2023.

The Car Dealer Top 100 retailer generated pre-tax profits of £990,000, down 68.8% from the previous year’s figure of £3.17 million.

This is despite improved revenue of £250.43 million compared to £230.34 million in 2022 – an increase of 8.7%.

In a statement accompanying the financial statements, the directors admitted that they were concerned about sourcing quality goods and falling margins. They also complained about the reduction in manufacturer bonuses.

However, the Board of Directors stressed that it was satisfied with the company’s performance in 2023.

Director Kayleigh Rowe said: “A combination of strong demand for used cars and servicing and repair work enabled a strong financial performance in the year ended 30 November 2023.

“Despite continued high demand for used cars, it remains difficult to source high-quality vehicles at competitive prices. We view used vehicle management as one of our key areas of focus.

“New car sales saw an upturn in both volume and sales value, indicating rising consumer demand.”

“Despite increased sales, gross profit fell due to lower margins and cuts in manufacturer bonuses.”

The majority of Hartwell’s revenue increase came from vehicle sales, which brought in an impressive £240.74 million in 2023.

In addition, aftersales revenues of £9.25 million and finance agreements of £445,000 were generated. The company also received a very healthy £1.87 million in rent during the year.

The Group spent £12.48 million on wages and salaries for its employees in 2023, compared to £12.94 million in 2022. The decrease can be explained by a reduction in the total number of employees, which fell from 366 to 341.

Yesterday (28 August), Car Dealer reported how directors of the Holdcroft dealer group have enjoyed a salary increase of 345% in the last yeardespite a drop in profits.

In contrast, Hartwell’s directors’ salaries fell from £581,000 to £498,000, although the highest-paid director received a small pay rise from £365,139 to £369,287.

Looking ahead, the company is now aiming for expansion after not adding any new franchises to its dealer network in 2023.

Rowe said: “The number of sites has neither increased nor reduced this financial year and remains at 11 sites representing Ford at a mix of car and commercial vehicle sites, along with a large multi-franchise used car dealership in Oxford which has authorised repairer status for Renault and Dacia.”

“The directors are always keen to explore any opportunity for targeted expansion that is within the company’s existing scope of representation and complements the company’s ethos and strategy.”

Key objectives for the coming fiscal year include integrating new franchises into our existing dealer network, improving and modernizing the infrastructure of our current facilities, and further expanding the Company’s multi-franchise used car sales at several existing, prominent locations.