Perrys reports strong profits despite market pressures, eyes continued growth

Perrys Motor Sales has reported a robust financial performance for 2024, delivering profit increases across key areas despite a dip in overall revenue, ongoing supply challenges, and pressure from rising payroll costs.

In year-end trading results, the AM100 dealership group posted a 3.8% increase in gross profit to £93.3 million, while operating profit rose to £6.1m, up from £5.2m in 2023. This came despite a 3.2% decline in group revenue to £768, primamrily attributed to a reduction in fleet sales.

Commenting on the results, Perrys managing director Darren Ardron said: “Overall, we were pleased with the results for 2024. The first half was good. Volumes and margins held up and the group achieved a very strong aftersales result, despite the headwinds that the wider industry experienced. Q3 saw more pressure on new retail units and the fall in used car values added further pressure to margins.”

The group reported notable growth in used vehicle activity, with used car transactions rising 7.6% to 17,201 units and used commercial vehicle sales surging 20.5% year-on-year. Aftersales revenue grew 8.1% to £93m, helping to offset difficulties in the new car market, particularly around Ford and Vauxhall, where demand remained subdued.

Payroll costs increased by 6.5% amid a sector-wide skills shortage, although the group made efficiency gains in other areas – including reduced utility bills thanks to falling energy prices. Financing costs also eased, with interest rates falling over the year in line with base rate reductions, ending 2024 at 4.75%, down from 5.25%.

Ardron highlighted the group’s commitment to staff retention. “During the year, the group launched several initiatives aimed at improving staff retention, focusing on continuing to improve the work-life balance of our colleagues with an aim of making Perrys an employer of choice,” he said.

The group said it added Omoda and Jaecoo franchises to its portfolio, too, as well as adding some current franchises into existing sites to focus more on a multi-franchise strategy, allowing for greater aftersales opportunities.

Despite market challenges, Perrys finished 2024 with net assets of £75.2m and has started 2025 strongly, reporting above-budget trading through March.

New car and commercial vehicle sales remained resilient, although Ardron acknowledged that high stocking charges had affected overall commercial vehicle profitability.

Used car margins have shown improvement, despite persistent supply constraints, and the aftersales division continues to perform well with growth in retail hours sold and improved recovery rates.

Looking ahead, the group is maintaining a tight focus on cost control, particularly in the wake of April’s rises in National Insurance and the National Minimum Wage. Working capital management is also under close scrutiny due to high interest rates and increased manufacturer vehicle supply.

“We’re very much looking forward to continuing with these positive uplifts throughout 2025, with a strong start to the year already experienced,” Ardron added.