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 proud of the company’s achievements.
