North-west-based motor group Swansway will continue to focus on used car sales in future years as the industry moves towards an agency model.

Posting profits of £14.4 million for 2023 resulting in a pre-tax profit of £13.4 million, Swansway said this was a strong financial result, given factors such as the ongoing cost-of-living crisis and increased interest rates.

“When reflecting on factors within the automotive industry, 2023 saw an environment where vehicle supply began to normalise, and the trade began to wrestle with electrification,” its directors said.

The motor group saw a turnover of £941 million, a 24% increase on 2022’s turnover, an EBITDA (earnings before interest tax and depreciation amortization) of £24 million, and a gross profit of £54 million.

2023 saw new car volume rise to near pre-pandemic levels, whilst used car sales increased by 7% as a direct year-for-year comparison. The group said it will continue to focus on the used car area in the coming years as the industry moves towards an agency model.

Non-stakeholder borrowings decreased from £17 million to £14 million in 2023, aligning with the group’s strategy to reduce the interest burden on the business going forward.

Swansway Motor Group director Peter Smyth, commenting on the performance, said: “Whilst profits declined when compared to 2022, we are starting to see the industry ‘normalise’. We are on a strong financial footing with £68 million worth of net assets, and we are poised at short notice to make the most of any opportunities that present themselves whilst the industry consolidates.”

Pictured: Swansway Motor Group's Smyth family L-R: Peter Smyth, David Smyth, Michael Smyth and John Smyth

 

Our digital products