Hawkins Motor Group recorded a 46.6% increase in pre-tax profits after seeing demand for car purchases “skyrocket” in the post-COVID trading period.
The Cornwall-based car retail group celebrated success in its first full year of trading since it joined the Nissan franchise with the acquisition of Town & Country Nissan in its annual financial results for the year to June 30, 2022.
It recorded a 46.6% rise in pre-tax profit, from £3.64m to £5.34m, as turnover rose by 18.8% to £106.4m (2021: £89.6m) during the period.
However, the business acknowledged that it had ridden a wave of success experienced in the wider sector in its trading statement.
“The company has achieved record sales during the previous 12 month, a trend that appears to be reflected in the motor trade in general,” it said.
“New vehicle stock has been more difficult to obtain, although for this reason demand for used vehicles in particular has skyrocketed and led to inflated used vehicle values. This, coupled with a change in consumer spending first seen in the prior year, of customers investing in vehicles instead of other luxuries, has led to improved margins.”
Hawkins’ statement added: “The company experienced growth across all areas of the business, the commercial offering remains strong alongside a busy parts department.2
St Austell-based Hawkins is a franchise partner of Citroen, Hyundai, Kia and Peugeot among its brands and added an MG dealership in Hayle, Cornwall, at the height of the COVID-19 pandemic.
Despite the buoyant recovery from the pandemic leading into challenging economic times, Hawkins’ results statement indicated that it remained optimistic for the future.
It said: “Looking forward, the company holds a significant order book for new vehicles, and it appears stock availability will become less of an issue. Targets set by manufacturers are realistic and take this into account.”