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Car launches set to help maintain HR Owen's strong finances

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New model launches in 2016 and 2017 will help to maintain HR Owen’s strong financial position, according to its newly published accounts.

Year-on-year comparisons in performance for the year ended April 30 are not possible as the AM100 dealer group reported a 16-month period to April 30, 2015.

Its annual report HR Owen states: “In the year to April 30, 2016 revenue from continuing operations before acquisitions increased by 6.9% on a pro-rated basis to £353.4 million (16 month period to April 30 2015: £440.9m).

“The group made a profit from continuing operations before acquisitions and tax for the year of £1.4m (16 months: £6.2m). Acquisitions in the year generated revenue of £2.3m and recorded an operating profit of £0.2m.”

Total revenue for the year was £355.6m (16 month period: £452m) with total profit before tax of £1.7m (£5.8m).

HR Owen achieved a “modest growth” in car volumes sold, increasing 2,746 units from 2,282 units in the comparative 12-months to the end of April 2015.

Service hours sold increased 13% compared to the previous 12 months.

Profit percentage from sales was 5% in 2016 and the 16-month period to April 30, 2015, from aftersales it was up 1% to 22%.

  • New car sold volumes: 982 (1,271)
  • Used car sold volumes: 1,764 (1,734)
  • Aftersales labour efficiency: 80% (85%)
  • Return on capital employed: 12% (12%)

HR Owen also uses Net Promotor Score to measure the satisfaction of its staff.

They were asked in 2015 if they would recommend the company as a place to buy from and if they would recommend it as a place to work.

An NPS score greater than zero is considered good, more than 50 is excellent. HR Owen staff gave it a score of 42.

Future outlook

“We continue to hold a strong order book for new cars and expect to benefit further from additional new models due for launch in the remainder of 2017 and 2017,” the company statement said.

“Used car trading has also started the year very strongly and aftersales is ahead of current expectations.

“The foundations for the group’s success in serving a highly discerning target market are now firmly in place and as the current period’s results have shown, the group is continuing to reap the benefit in both employee and customer loyalty.”

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