Group 1 Automotive delivers record financial results in Q1

An acceleration of new vehicle, parts and service revenues has propelled Group 1 Automotive to a record set of Q1 financial results.

The US-based car retailer’s overall revenues grew by 7.4% to $4.1 billion (£3.3bn) as gross profit grew by 0.4% to $727.9m (£384m) with the help of a 7.9% growth in new vehicle sold volumes (to $2bn and 39,649 units) and 3.7% in used vehicles (to 45,437).

Parts and service gross profits grew by 14.4% to $297.3m (£238.5m) during the same period, ended March 31.

In its UK business, which accounts for 22.1% of the group’s new car sales business, Group 1 delivered an 11.2% uplift in new car revenues to $347.1m (£278.5m), alongside a resulting gross profit up 16.7% at £32.6m (£26.2m).

Its UK used car revenues shrunk 1% to $318.8m (£255.8m) in the period as gross profit shrunk 11.6% to $17m (£13.6m), meanwhile, as parts and service sales grew 15.7% to $74.6m (£59.9m), with gross profit up 12% at $43.5m (£34.9m).

The growth comes on the back of last September's acquisition of Essex-based BMW and Mini franchised car retailer Fairfield Motor Group.

New Group 1 president and chief executive Daryl Kenningham said: "Group 1 achieved another strong quarter. Our teams delivered record aftersales performances in both the US and UK, as a result of ongoing investment in aftersales in areas such as technician recruitment, innovation, and technology. Our customers continue to respond by trusting us with their business.

"Record first quarter new vehicle revenues are a result to some degree of elevated prices from ongoing inventory shortages. Some manufacturers are maintaining production discipline into the future.

“Our days' supply continues well below historical averages and is single digits in some of our critical brands."

Earlier this month AM reported that Group 1 is once again on the hunt for a new managing director after Mark Bridgland announced his departure from the US-owned car retail group ahead of the start of a “new venture”.

The news came just over eight months after Bridgland’s promotion from director of operations ended the AM100 car retail group’s 22-month search for someone to fill its MD post.