JCT600 posts £43m pre-tax profit and ROS of 3% for 2022

JCT600 posted a pre-tax profit of £43 million, down slightly by 4.4%, while annual turnover increased by 11% to £1.45 billion.

Return on sales was at 3%, although this declined slightly from 3.5% in 2021.

The group's annual results for the year ended December 31, 2022, stated that while its used and new sales volumes declined overall over the year, a greater focus on premium model sales meant a 20% increase in the average sale price per unit.

JCT600's exit from Stellantis brands with the closure of Vauxhall, Peugeot and Citroen sites in Bradford, also played a part in total vehicle sales volumes reducing.

JCT600 chief executive John Tordoff, told AM last year, that the decision to exit Stellantis came after the brand's decision to issue two-year termination notices to its entire European retail network as part of a roll-out of new agency model contracts.

Tordoff said at the same time it had presented an exit opportunity, ending more than six decades of partnership with Vauxhall and almost four decades with Peugeot.

“We just said thanks but no thanks,” said Tordoff, who added: “Nothing I have heard from them since has made me question our decision.

“It’s like a marriage, of sorts. In car retail you have ups and downs but if the relationship between the retailer and the manufacturer is strong, you believe in the brand and they believe in you, you’ll both come through it together. When that’s not the case, you’re likely to just want out.”

JCT600 does have growth plans and Tordoff is keen to grow with some of the group’s existing partners, which include Aston Martin, Bentley, Kia, Mercedes-Benz, Porsche, Rolls-Royce and Volkswagen.

New car sales turnover increased by 17% in total, with gross profits increasing by 13%.

Used vehicle turnover increased by 7.3% and gross profit marnings decresed by 18%. However, this was after an increase in used car gross profit of 26.9% in 2021. This reduction impacted the group's gross profit margin, which fell slightly from 12.9% to 12.6%.

Aftersales turnover increased by 7.8%, while gross profit marging was maintained. The group said this was "an exceptional result" due to the inflationary pressure on technicians' wages across the group.

JCT600 invested £7.1m in premises last year, with the opening of a solus Ferrari site in Leeds and the acquisition of Caygill Holdings. The deal included a VW van centre in Cleckheaton, a VW van aftersales centre in Leeds and VW used van sales and preparation centre in Batley.