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Arbury Motor Group has reported soaring profits for 2024, despite ‘cost pressures’ which contributed to the closure of the car dealer’s only Citroen franchise.
Accounts, recently filed via Companies House, show that Cathedral Motor Company Limited – Arbury’s ultimate holding company – made a pre-tax profit of £2.28m in the 12 months to the end of last December.
The figure is more than 75% up on the previous year’s result, with turnover also leaping by 17% to £222.25m.
The results were made possible by a 1% return on sales, compared to 0.7% in 2023 and strong new and used vehicle sales. Throughout the year, Arbury sold 5,341 new vehicle units, as well as 5,553 used vehicles.
Bosses said that gross margins and overall units remained ‘consistent’ with the previous year, which coupled with ‘tight control in expenses’, led to an increase in the profitability of the vehicle sales departments of 21.5%.
Despite the success, the year also saw a number of challenges for the firm.
The Worcestershire-based retailer said that a ‘general increase in overheads’ and the ‘continuing increase in labour costs’ led to difficulties.
The firm axed its only Citroen dealer, reducing its number of locations to eight, although talks have been held with Stellantis about the possibility of adding Leapmotor to its brand portfolio.
At the end of the year, Arbury had brand partnerships with Peugeot, Nissan, Fiat, Abarth, Skoda, Seat and Cupra.
Reflecting on 2024, finance director Martin Dobson said: ‘Profitability during 2024 remained good despite a difficult and competitive trading environment with gross margins coming under pressure, and a general increase in overheads.
‘Managing this and the continuing increase in labour costs became the biggest cost challenges the business faced during the year.’
He added: ‘The company made the decision to cease trading during the year in its Citroen new car franchise, reducing locations to eight, but continued to operate as a Citroen Authorised Repairer in its neighbouring Peugeot location.
‘The company have been in negotiations with Stellantis to add the exciting EV Leap brand to its portfolio for 2025.
‘Brands represented going into 2025 are Peugeot, Nissan, Fiat, Abarth, Skoda, Seat and Cupra.
‘The centrally operated multi-franchise fleet operation provides an all-brands opportunity though its brokerage offering and continues to perform well both in terms of volume and profitability.
‘Relationships with existing manufacturing partners remain strong with new franchise opportunities actively being explored.
‘The directors would like to thank each member of the team who have continued to demonstrate an incredible desire to succeed both individually and collectively and without whom the business would not continue to ride the many differing challenges it faces year on year.’
Elsewhere, the accounts reveal that the group’s average workforce rose from 284 employees to 294, despite the loss of the Citroen site.
Staff costs came in at an increased £12.87m with directors’ remuneration rising from £1.25m to £1.34m.
Ordinary dividends were paid amounting to £800,000 but the directors did not recommend payment of any further amount.
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English (US) ·