Stoneacre Motor Group has reported turnover growth of 9% and profit before tax up 34% in its financial results for the period to April 28, 2018.
The retail group, based in Thorne, South Yorkshire, took strides towards its ambition of becoming a £1bn turnover business in a period which ended with a series of acquisitions.
Stoneacre’s financial results to the end of April last year showed a total turnover of £786.3m (2017: £721.2) and profit on tax of £10.6m (2017: £7.9m).
The AM100’s 17th-placed retail group – 25th in 2017 – had set the benchmark sales objective as a target for 2020, but chairman, Richard Teatum, said that he expected the business to achieve its goal a year early following last October's acquisition of Mill Garages Northeast Ltd Volvo dealerships in Harrogate, Newcastle, Stockton and Sunderland.
Stoneacre kicked off its 2018 acquisitions with a move for Nottingham’s Chris Variava dealership complex in January and a deal to secure Burrows Motor Company's Hyundai and Fiat franchises in Sheffield a month later.
The Chris Variava business included Suzuki, Mitsubishi, Alfa Romeo and Jeep franchises at one location.
The acquisition of the Burrows businesses saw the group double its representation with the South Korean brand and take its number of Fiat sites to 16, meanwhile.
In March Stoneacre also acquired Platts Garage’s multi-franchise – Fiat, Renault, Dacia and Kia – site in Stafford.
Commenting on its latest set of annual financial results in its accompanying strategic statement, Stoneacre said: “During the period we have continued with the process of integrating acquired businesses into the Stoneacre Group and have achieved our target of ensuring that all new locations become earnings enhancing within their first full twelve months of operation.
“We have also completed the refurbishment of several dealerships to ensure compliance with current manufacturer corporate standards.”
Stoneacre reported that improved aftersales retention had been partially to credit for the growth in turnover and profitability, with its aftersales retention rate having risen from 63% to 77.3% during the reported period.
This resulted in a 7.1% increase in net profit and 10% rise in gross revenues through aftersales, it said.
The group’s 11 Accident Repair Centres also produced 4.92% revenue growth during the year, while its Doncaster Parts Distribution Centre delivered a turnover of over £50m – up 6%.
Summing-up its perceived future challenges, the group said that, despite a challenging political and economic environment, its target of achieving £1bn turnover “will be achieved in 2020”.
It said: “Further acquisitions are currently being considered by the board of directors.”
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