Family-owned car dealership network Holdcroft Motor Group, saw turnover surpassing the £750m mark in spite of facing substantial challenges that impacted overall profitability.
The group, founded in 1966 by Terry Holdcroft in Hanley, Stoke-on-Trent, has grown to operate a wide range of dealerships, including Hyundai, Honda, Renault, Nissan, Dacia, Mazda, Mitsubishi, Volvo, and Isuzu.
In its financial statements for the year ending 31 December 2023, the company reported a turnover increase from £659.9m to £750.2m, reflecting robust sales across its portfolio of brands.
However, despite this revenue growth, pre-tax profits declined from £10.2m in 2022 to £8m in 2023. The company attributed this decline to a range of “outside factors” that had a significant impact on its financial performance.
In a statement signed off by the board, it was highlighted that “multiple increases in interest rates through 2023 led to an additional 1.25% in financing costs.”
These rate hikes affected both the company’s short and medium-term borrowings, as well as its day-to-day inventory stocking facilities provided by manufacturer partners.
The increased costs, coupled with a challenging retail environment, put pressure on the company’s margins despite the overall increase in sales.
The board acknowledged the difficulties faced during the year but remained confident, stating: “Although the financial result is less than that of the past two years, the journey has been a much tougher one and given the increases in costs, driven principally by interest rates and inflation, we feel that the company is on a very firm footing as we tackle the changes in the automotive landscape that the next few years will bring.
