Sinclair Motor Holdings took a hit in 2024 with pre-tax profits falling 48.3% to £4.4m while turnover rose 5.7% to £674.1m for the period.
The group said the performance was positive in the face of high interest rates and inflation and a Budget that increased costs for dealers.
The new car market was also negatively impacted by the ZEV Mandate while used car values declined in the first half.
“The unavoidable result of these issues was a year where customers were increasingly uncertain and all our businesses experienced a reduction in consumer visits, sales and ultimately profitability,” it said in results filed at Companies House.
“Whilst many in the industry have seen 2024 represent a loss-making year, to maintain the profit levels that we achieved is a very commendable result,” it added.
In the new car market, retail BEVs was a challenge with buyers remaining to be convinced.
“For most of our brands 2024 resulted in higher volumes than the previous year. However, due to the difficulty in pushing electric retail volumes, and the need to help our customers financially change their cars, our profit per units were somewhat behind last year.
“Overall, the group’s 2024 new car performance was very encouraging. Our aim is always to try and grow our market share by increasing our new car sales volumes, and 2024 saw a strong volume growth at a group level.”
Sinclair commented on the difficulty on sourcing used car stock following successive years of declining new car sales
“The availability of retail used stock continues to be a challenge. Our used car teams find it difficult to hold the required levels of used car stock, which has an impact in our overall used car volumes,” it said.
The group’s service and parts departments had another very strong year during 2024. At a group level both departments resulted in an increase in turnover and profitability.
As a board we are extremely confident that 2025 will result in a return to increased profitability.
Sinclair commented on the technician shortages impacting dealers. It is losing technicians to other industries, including railways. It is offering changed work patterns such as four condensed days and incentives, including employee car schemes to boost retention.