Stoke-on-Trent-based car dealer group TG Holdcroft (Holdings) says it is ‘extremely proud’ of its performance in 2024 despite a ‘challenging’ year for the UK motor sector, with low consumer confidence and high inflation affecting both new and used vehicle sales.
Turnover for the group, whose registered office is in Leek Road in Hanley, fell slightly to £745.6 million, down 0.6 per cent from £750.3 million in 2023, while gross margin increased to £59.1 million, up from £56 million the previous year.
Pre-tax return on sales was 1.03 per cent, compared to 1.07 per cent in 2023, and return on capital employed stood at 15.69 per cent, down from 18.42 per cent.
In a group strategic report for the year ended 31 December, 2024, the board of directors wrote: “Despite margin pressure in both new and used vehicle markets, the group delivered a resilient financial performance.
“Our focus has been on delivering a premium quality service to all our customers across the breadth of all outlets and the manufacturers that we represent, ensuring that as many of these interactions as possible are positive.”
The report highlighted a decline in retail sales, with new retail volumes down 6.35 per cent and used retail down 3.65 per cent. Corporate sales, however, increased by 18.36 per cent, driven in part by strong uptake of electric vehicles (EVs) in the business sector.
The board added: “There does still appear to be a certain apathy from retail consumers towards EV products which manufacturers and dealer partners alike will need to address.”
Among the group’s franchise divisions, Renault reported turnover of £143 million, up 6.5 per cent year-on-year, with new retail sales slightly up and used sales in decline. Nissan’s new retail volumes remained static, though corporate sales surged by 119 per cent.
Hyundai saw steady retail volumes but margins fell due to increased discounts, while Holdcroft Honda enjoyed a turnaround, posting a pre-tax profit of £550,052 compared to a loss of £69,296 in 2023. Volvo and Mazda outlets also performed strongly, with Motability sales boosting profitability.
The group, which has 30 dealerships, continued to expand its brand portfolio, welcoming Omoda and Jaecoo into the business, and invested in EV training and marketing. The board said: “We are committed to championing the benefits of EV ownership to all our customers and many are far more receptive to the prospect than in previous years.”
Holdcroft said it expects further reductions in interest rates and continues to monitor regulatory developments in motor finance, while also focusing on sustainability and reducing its environmental impact.
The board said: “When reflecting on the financial performance of 2024 we are extremely proud of the outcome and believe this sits amongst our best annual achievements in recent years.
“The journey through 2024 has been a very challenging one and given the increases in costs, driven principally by interest rates and inflation, we feel that the company is on a very firm footing as we tackle the changes in the automotive landscape that the next few years will bring.”
