The TG Holdcroft car retail group completed its new headquarters and reported a 20.3% increase in pre-tax profits after the COVID-19 pandemic caused car sales to falter in 2020.
The AM100 business, based in Hanley, Stoke-on-Trent, was hit by a 23.6% decline in new car retail sales and 43.5% dip in new car sales to corporate customers in the period to December 31, 2020, but was able to generate improved profitability.
Turnover declined 22.6% from £448.9m to £347.3m as the group’s profit before tax rose from £4.2m to £5.1m and return-on-sales rose from 0.94% to 1.47%.
A 2020 financial results statement issued by the group’s board said: "Whilst the financial performance of the organisation reported in this statement shows an improvement on previous years, this does not paint the complete picture of 2020 which has been heavily impacted by the effects of both coronavirus and government restrictions that have been put into place across the retail industry.
"Notwithstanding the strong financial result that we are reporting, the group has found the trading period to be extremely challenging.
"There have been many difficult decisions that have had to be taken. Forming strategies with no clear knowledge of what may happen in the short term has been one of the most difficult processes that our senior management team have had to contend with throughout 2020.
"The financial success of the group through this period has been driven in large part by senior management getting those decisions largely correct and implementing them extremely quickly across the organisation."
TG Holdcroft currently operates 23 franchised car retail outlets, with brand partners Hyundai, Honda, Renault, Nissan, Dacia, Mazda, Mitsubishi, Volvo and Isuzu.
Despite the impact of COVID-19, the group was able to complete its development of a new headquarters in November 2020.
Its board praised the support offered by Government and said that its ability to embrace reduced business rates and take advantage of the Coronavirus Job Retention Scheme (CJRS) had “saved many livelihoods along the way”.
Commenting on its prospects for 2021, the TG Holdcroft board said: “The effects of the COVID-19 pandemic will be felt for many months to come and remains the largest threat to UK businesses in both the short and medium term.”