Research has found that the number of AM100 motor retail groups which failed to record a pre-tax profit in FY2022 was double the number that made losses in 2021, at six.
AM has now launched the 2023 AM100 Report, studying the UK’s largest and most influential car dealers and their latest financial results, and it is available here free to read in a digital format.
It reveals that although the overall return on sales of the AM100 declined year-on-year to 2.2% from 2.4%, the vast majority of AM100 dealer groups achieved good returns, with earnings fuelled by demand-led car markets and cautious cost controls.
In a sign of the improving supply of new vehicles, the AM100’s total revenues rose to £72 billion.
The research also found an increasing diversity of franchised portfolios for some, particularly with adoption of EV-focused brands such as MG and BYD.
After some consolidation or break-ups of a few major groups, the AM100 also has four new entrants this time. See the report for details.
It’s great to see the sector firmly back into growth mode after the turmoil of 2020 and 2021. While acquisitions typically make the headlines at AM-online, it is clearly organic growth that comes through in the data collated to prepare this 2023 AM100 report. And while some dealer groups have been rationalising their portfolio of franchised outlets, others have been multi-franchising steadily and recruiting to bolster their workforces.
Yet again, I’m delighted that the motor trade specialists at accountancy firm BDO have partnered with AM for the AM100 research. BDO’s regional managing partner Steve Le Bas, newly promoted head of motor retail Chris Bond and audit director James Evans have been analysing statutory accounts from 2022 and crunching the numbers to monitor the financial output of the AM100. Where 2022 accounts were not yet available from some groups, together we worked to agree turnover estimates.
We’ve built a picture of the industry’s state of health in 2022, while many are set to close 2023 with even higher levels of sales.
In this special issue you’ll see our findings, while the main turnover table is at the back of the report.
Read the 2023 AM100 Report here.