Hendy Group has reported a 42% increase in revenues and 163.7% increase in profit before tax in its first set of annual financial results since the acquisition of the Lifestyle Europe car dealership group.
The Hampshire-based AM100 retailer filed accounts which showed turnover of £532.8 million (2016: £375m) and profit before tax of £7.6 million (2016: £2.9m) for the period to December 31, 2017, crediting “very strong” results in new and used car sales and its commercial vehicle retail business.
The group’s return on sales figure rose from 0.8% to 1.4% during period.
In a statement issued within the results, Hendy Group said that contributions to the strong set of results were also made by the “distribution of industrial engines worldwide” and the “supply of parts and accessories across all sectors of the business”.
Hendy said that Ford, Kia, Mazda and Seat had all performed well for the group during the reported period, but added: “ongoing focus is required on the profitability of the other brands”.
Hendy completed the acquisition of Lifestyle Europe in June 2016. The group, formed in 2001, operated Ford, Mazda, Kia, Renault, Dacia, Seat, Suzuki and Isuzu in the South East and became part of newly formed company Hendy Automotive Limited.
At the time, both group’s had been part of the AM100, Hendy having achieved a £357m turnover in 2015, while Lifestyle recorded a £187m figure.
During the 2017 reporting period the acquisition resulted in non-recurring costs of £289,000 associated with the completion of rebranding of the former Lifestyle Europe sites.
Hendy’s growth plans have already continued apace in 2018, wuith the opening of a new Suzuki franchise in Crawley and the start of construction work to create new Mazda, Kia and Honda showrooms for Hendy Group in Eastleigh, Hampshire.
Planning consent has also been granted for a Car Store used car showroom in Ferndown, Dorset, which is set to open next year.
The new facility will showcase around 200 vehicles and feature a sales suite and on-site parking.
The group currently has 12 franchises in 25 locations and employs more than 1,000 people in Hampshire, Sussex, Surrey, Kent and Devon.