Family-run car dealer T Wall Garages has reported improved profits for 2024, despite the majority of the industry enduring a difficult year.
Car Dealer has reported on countless automotive businesses which suffered plummeting profits last year but T Wall has bucked industry trends by bettering it’s 2023 results.
Accounts recently published via Companies House show that Worcester Carsales (Holdings) Limited – the dealer group’s ultimate holding company – made a pre-tax profit of £2.5m in the 12 months to the end of last December.
That figure represents an improvement of more than 30% when compared to the previous year, when the franchise dealer pocketed £1.9m.
The improvement has come despite a fall in turnover, which fell from £163.87m to £162.79m.
The vast majority of the firm’s revenue – £147.26m – came from the sale of goods, namely new and used cars, while the rendering of services brought in a further £14.38m. The firm also made a further £1.14m in commissions.
The firm, which represents Citroen and Vauxhall in the West Midlands, was founded as Worcester Carsales by Derrick Grieveson, way back in 1953.
The firm has remained in the Grieveson family throughout the intervening 72 years and bosses seemed please when reflecting on the retailer’s performance last year.
Writing in the accounts, director Alexandra Grieveson said: ‘During the year the group made a profit before tax of £2.5m (2023: £1.90m).
‘Turnover decreased to £162.8m. Gross margin remained strong at 12%.
‘The return on sales before tax was 1.53% (2023: 1.16%) which is still an excellent result under the difficult conditions given that fuel and energy prices together with increased interest rates continue to cause cost of living issues.
‘The group has performed well in what was an extremely challenging market.
‘The group continues to seek further growth and has the resources to take advantage of any suitable opportunity which may arise.’
Throughout the year, the firm saw staff numbers dip from an average workforce of 349 to 336, with wages and salaries costing an increased £11.47m.
At the same time, directors’ remunerations decreased from £1.22m to £781,904, despite the rise in profit, with the highest paid executive receiving £340,417.
The group ended the year with net assets totalling £30.16m, compared to £28.63m in 2023. Preference dividends were paid amounting to £130,000 but the directors did not recommend payment of any final dividend.
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