Read Motor Group has said that it overcame ‘”aggressive competition” in the new car retail sector to grow turnover and profit during 2018.
The Grimsby-based car retail group recorded a 29% rise in turnover, from £45.2m to to £58.8m, last year as its profit before tax rose 32.5%, from £663,294 to £878,607, during the reporting period to December 31, 2018.
The results follow the group’s April 2018 expansion of its franchised relationship with Hyundai through the acquisition of Burrows Motor Group’s Doncaster business.
Read’s acquisition – for an undisclosed sum – marked Burrows’ withdrawal from the Korean franchise following Stoneacre Motor Group’s earlier acquisition of its Sheffield site.
In a statement published alongside its annual results, a Read Motor Group spokesman said: “There continues to be aggressive competition in the retail vehicle sector with a consequent pressure on margins.
“Indications are for 2019 that global new car sales will be lower than 2018.
“However, Hyundai car sales in the UK continue to see growth and the Read Hyundai performance in the first six months of 2019 reflects this growth
“In addition, further national awards have been won by the group, with customer satisfaction levels being reflected in the financial results being achieved.”
The Society of Motor Manufacturer's (SMMT) recently-published new car registrations for July revealed that Hyundai Motor UK's growth appears to have stalled in 2019.
Year-to-date the manufacturer's registrations are 9.55% down at 51,565 (2018: 57,007), with the i20 and i30 hatchbacks accounting for much of the decline.
Read Motor Group currently operates from seven sites across Lincolnshire, Yorkshire, Nottinghamshire and Norfolk and increased its number of staff from 100 to 146 in 2018.
The family-run dealership was established in 2010 after managing director, Mike Read, acquiring the Hyundai franchise in Grimsby.
Read added a Suzuki franchise in the town in 2014 and this was followed by the addition of Read Hyundai Kings Lynn in January 2015 and Read Hyundai Worksop in 2017.
Earlier this year, Read Hyundai opened in Boston whilst also securing Volkswagen Authorised Repairer status for the Boston site.