The Retail Motor Industry Federation (RMIF) has posted an increase in operating profits for its annual results despite the impact of an “embarrassing and destructive Brexit quagmire”.
According to the report on Companies House, the RMIF’s results for the year ended December 31, 2018, shows operating profits increased to £149,000, compared with a £10,000 loss over the same period last year.
Annual turnover increased slightly from £26.2 million to £27.2m. Profit before tax fell from £549,000 to £489,000.
In his statement as part of the results, Peter Johnson, RMIF chairman, said: “Brexit has caused tremendous uncertainties and the introduction of the Apprenticeship Levy could, and should, have been handled much better...
“...We can only hope that in the next few critical months we see decisive political leadership that leads us through the current embarrassing and destructive Brexit quagmire.”
The National Franchised Dealers Association (NFDA) has already called on new Prime Minister Boris Johnson to end the Brexit uncertainty with a deal to safeguard the UK automotive retail sector's 800,000 jobs.
Membership across the RMIF saw a fall of 294 over the last 12 months, to 10,175 members in total.
Johnson said RMIF membership had a “solid year” and the main reason behind the drop was due to consolidation affecting the Petrol Retailers Association (PRA) and National Body Repair Association (NBRA) in particular.
Core subscription income from members also fell by £423,000 to £4.8m, but Johnson said this was mainly due to the decision to stop some activities with the RMIF’s Big Oil subsidiary, which were expected to become loss making.
He said there are “no underlying issues with membership”.
Johnson was pleased with the results against a continuing background of tough economic and industry environment.
He said: “It is particularly pleasing that, despite the economic environment which was a major factor in unrealised investment losses over the year of £730,000 and a £340,000 reduction in value of our property including Great Portland Street, London, our operating performance ensured we maintain our balance sheet strength over the year, with net assets at just under £27m.”
Johnson said it was this balance sheet strength that would continue to help the RMIF deal with the potential for volatility in the UK in the short and medium term.