Franchise retail groups, Glyn Hopkin and Eastern Western both report pre-tax profits up for the year ended 31 December 2019.
Glyn Hopkin has reported a £3.1m profit before tax as turnover increased 5.7% to £453m. The directors said this was particularly impressive given lower supply from its major manufacturer partners Nissan and FCA. This was negated by taking a larger share of the brands’ national sales volumes.
Glyn Hopkin expanded with MG, opening three further sites after the success of its first in 2018. It also opened its first Kia retailer in December 2019. The group also dualled FCA at Romford with Nissan, Mitsubishi at Chelmsford, and MG at St Albans, Cambridge and Milton Keynes.
Sonia Hobbs, was appointed Marketing Director, a key role given the need to develop a credible e-commerce strategy. Operations director Stuart Hodson also left the group after 26 years.
Scotland’s Eastern Western Motor Group recorded an £11.9m profit on turnover up 10% from £699m to £770m. The multi-franchise retailer said like-for-line new car sales were up 11% in a Scottish market down 5.4%, with used cars up 6% and aftersales up 10%.
However, Covid-19 has had a material impact in early 2020 with significant losses incurred. The pandemic “exposed a weakness in the online capabilities of many car retailers”. Although the group has the skills and resources to develop its own online model, it is felt the adoption of manufacturer solutions would provide better ‘brand experiences’.” It is now working on an interim solution.