Sytner and CarShop owner Penske accelerated turnover and profit in 2021

Sytner Group and CarShop owner Penske Automotive has reported a 25% rise in revenues and 127% increase in pre-tax profits in its annual financial results for 2021.

The US-based automotive business delivered total revenues of $25.55bn (£18.83bn) and a profit before tax on continuing operations of $1.61bn (£1.18bn) in the 12-month period to December 31, it revealed this morning (February 10).

Its UK retail division contributed 31.2% of the group’s overall revenues during a year which saw the CarShop used car supermarket network – rebranded globally in-line with its UK operation – expand with six new locations.

Penske Automotive chairman and chief executive, Roger Penske said: "I am pleased to report all-time record profitability.

“Over the last two years we have paid down nearly $900 million in non-vehicle debt, reduced our debt to total capitalization to 26% from 46%, and improved our leverage ratio from 2.9x to 0.8x and as of December 31, 2021, returned over $530 million to shareholders through share repurchases and cash dividends.”

Penske’s results revealed a 9.5% increase in the sale of new retail vehicles (to 195,384) and a 13.3% rise in used retail vehicles (to 264,520) in the reported period.

Its results statements revealed that the group currently operates twenty-three CarShop used vehicle locations globally, including the six locations added during 2021.

CarShop currently operates 15 retail locations in the UK, following the addition of smaller CarShop Express locations in Leicester, Leighton Buzzard and Halifax.

Spelling out its plans for the division, Penske said: “We are targeting 150,000 in unit sales and $100m (£73.7m) of earnings before taxes for CarShop by the end of 2023.

“For the three months ended December 31, 2021, retail unit sales increased by 24.3% to 14,815 while revenue increased by 61.0% to $393.9m (£290.2m), including an increase of 38.4% on a same-store basis.

“For the twelve months ended December 31, 2021, retail unit sales increased by 19.2% to 63,403 while revenue increased by 43.2% to $1.5bn (£1.1bn), including 30.9% on a same-store basis.”

Developments in the AM100-topping Sytner Group franchised car retail business in 2021 brought about the completion of a new Jaguar Land Rover dealership in Northampton and plans to expand its BMW dealership in Coventry.

The group also separated its Ferrari and Maserati dealerships in Birmingham and begun trading from Ferrari’s first new UK franchise point for 15 years ahead of the opening of a new Glasgow showroom in Q1 this year.

Last month AM reported that Sytner’s Tower Garage Ferrari dealership in Egham had been named as the Italian supercar maker’s ‘Top UK Dealer 2021’.