Group 1 sees UK profits fall 4.4%
05 February 2020
The UK arm of Group 1 Automotive has seen gross profits drop 4.4% in 2019 to £205.1 million ($267.7m) on a turnover, which also recorded a fall (-1.0%), to £1.85bn ($2.41bn), according to the results issued today for the US parent firm.
The poor UK performance was due to decreased margins on new and used cars.
Overall the US auto retail group saw profit before tax grow 10.6% to $227.3m on a turnover that was up 3.8% to $12.0bn.
In the UK, gross profit on new car sales dropped 14.7% in 2019 compared to the previous year thanks in part to the group selling 1,151 fewer cars and a 12.1% decrease in gross profit per unit.
Used car profits dropped 14.3% due in part to a 16.3% drop in profit per unit. However, aftersales profits grew 2%.
2019 was intended to be a year of consolidation for Group 1 Automotive in the UK, according to then managing director Darren Guiver speaking to sister publication Auto Retail Bulletin. However, the group added four Volkswagen franchises bought from Inchcape mid-year.
Group 1 Automotive UK boss Darren Guiver then quit the business in November 2019 after more than three years at its helm. Mr Guiver originally joined the US-owned firm in 2016 when Spire Automotive, the business he owned and ran, was acquired by Group 1.