Gross profit rose for Eastern Western despite car supply issues and revenue dip

The leadership team at Eastern Western Motor Group has praised its workforce for delivering a resilient financial result in 2022 despite economic issues and shortages of vehicle supply.

Despite a turnover reduction from £818 million in 2021 to £810m in 2022, the Eastern Holdings group increased gross profit from £99.6m to £10.2m.

Profit before tax was down from £32m to £24.9m however, largely due to the removal of government rates relief, general inflationary increases and the prior year result including a property revaluation gain.

"Overall the directors are very satisfied with the group's performance in 2022, considering new vehicle supply across many of our franchises was adversely affected throughout the year however the stock position improved during the last quarter," wrote company secretary Nasser Mohammed in the annual accounts.

Chairman and chief executive Douglas Brown told AM: "We are pleased that, taking everything into account, we still managed to achieve a ROS of 3%."

After gaining franchises from Toyota GB for Falkirk, Stirling, Perth and Dundee, investment is under way to open a new site in Dundee for Lexus, Toyota and the group's Car Deal Warehouse used vehicle supermarket brand by November 2023.

Toyota Stirling, operating in temporary facilities currently, in early 2024 will be homed in a new seven-car showroom that is being added to the group's exisiting site housing a Western Honda dealership.

And a dealership in Perth has been acquired ready to refurbish as the permanent home of Perth Toyota.

This comes after expansions in 2022 which included opening a VW Commercial Vehicles dealership at Newbridge, Edinburgh, and a new Mercedes-Benz dealership at Fife

At the end of 2022  Eastern Western Motor Group joint managing director Peter Collin retired, with his counterpart Keith Duncan assuming the role of group managing director, with responsibility for the entire group and its strategic direction.

Douglas Brown, the group's owner, became chairman and chief executive, and three of EWMG's franchise directors were promoted to divisional managing director positions on the main EWMG board.