Pentagon Motor Group owner Motus Group UK grew its per-tax profits by over 60% in its 2021/22 financial year, despite a decline in turnover.
The South Africa-owned operation – part of Imperial Holdings’ Motus Corporation – this week published results for the 12-month period to June 30 which showed PBT of £17.2m (2020/21: £10.7m) as revenues dipped 2.5% to £1.12bn.
A results statement issued by the AM100 business, which also operates Motus Commercials, said that automotive supply chain disruptions had combined with substantial increases in production, freight, and logistic costs and the war in Ukraine to stymie revenue growth in the period.
It stated: “Vehicle supply remained constrained in the year in which there was strong consumer demand.
“The impact on revenues resulting from reduced vehicle sale volumes was counterbalanced by significant increases in vehicle prices. Furthermore, the business experienced an increase in aftersales revenue.
“Increasing inflationary pressure coupled with staff shortages has increased operating expenses and staffing costs. Despite these challenges, the business achieved strong performance for the year.”
Pentagon recently became the latest in a number of car retail groups to trial Sunday closing at its dealerships.
The group, which appointed former Peugeot managing director David Peel (pictured above) as MD in April last year, said that it would be closing all 30 of its sites in a pilot of the measure, which aims to improve the wellbeing and work/life balance of its staff.
Pentagon, which was acquired by Motus in August 2017, operates Vauxhall, Ford, Peugeot, Citroen, Seat, Nissan, Renault, Mazda, Dacia, Kia and Cupra franchises in Yorkshire, Staffordshire, Derbyshire, Lincolnshire, Lancashire, Merseyside, Cheshire and Nottinghamshire.
The other components of the Motus Group UK operation are Motus Commercials, Motus Truck and Van and Motus Vehicle Solutions (MVS).
Commenting on the three months’ trading experienced after the end of its most recent financial year, Motus warned of the impact of macro-economic factors which continue to impact the business.
It said: “The first three months of the new financial year have followed the trading patterns of the year to 30 June 2022 with continued constraint on supply resulting in lower volumes while pricing remains strong.
“However, the macro-economic environment with higher inflation and increasing interest rates is showing signs of dampening consumer demand in the short term.”