Greenhous Group profits up 16% on back of diversified strategy

Greenhous Group said its plan to diversify away from the "normal dealer and manufacturer model" has helped it see a 16% increase in pre-tax profit performance for its annual results to £30.6 million.

The company's strategic report for the year ended December 31, 2024 shows operating profit before exceptional items growth, increasing from £28.7 million to £32.3 million, an improvement of 12% year-on-year.

While total operating margin decreased slightly from 1.92% to 1.80%, the company maintained robust returns, supported by a 20% increase in turnover to £1.8 billion and "a strategic focus on service quality and customer expansion beyond traditional manufacturer-dealer relationships".

The group has its own truck, fleet, rental prestige and performance divisions, in addition to its retail group operations in partnership with a wide selection of passenger car brands, including Citroen, Nissan, Omoda, Jaecoo, Vauxhall and Leapmotor.

Greenhous launched its Lumen dealership for luxury pre-owned vehicles in April 2024 and confirmed it would bring a right-hand drive Chevrolet Corvette to the UK.

Derek Passant, Greenhous Group executive chairman, said: "Our plan to diversify away from the normal dealer and manufacturer model enabled us to outperform the industry in general, and while our relationships with manufacturers are the core of our business, we will continue to expand the other customer offerings that we have been developing over the last few years which is enabling Greenhous to grow our customer base.

"As always at the forefront of our mind are the service levels that we provide which is vital to our business model."

Despite the overall minimal growth in the industry, Greenhous increased total sales from 50,000 units in 2023 to 74,000 units in 2024, through a combination of taking on new marques and increasing the sales of the established ones it already represents.

Margins, despite more competition through greater availability of products, managed to hold up resulting in a very pleasing financial outcome for the group. 

A statement from the business for its annual accounts said: "Looking ahead to 2025 Greenhous is hopeful that we will be able to add further marques to the current brands we represent and expect a further growth in sales. 

"This combined with the investment that we made in the expansion of our refurbishment, PDI and storage offerings during the year, which generated many new customers and the investment that we have put into our truck operations and will continue to, during 2025, should ensure another acceptable financial performance."