BCA Marketplace has seen volume growth and increased services revenue across the business drive profit before tax up to £41.1 million (£7.7m 2016) and group revenue increased from £1.2 billion to exceed £2bn.
The business saw an increase of 37.7% in adjusted EBITDA to £135.6 million over the period. Operating profits increased by £58m to £74.3m, which the company said was a result of increased adjusted EBITDA and a lower level of significant one-off and non-recurring items relating to acquisitions and corporate activity.
The UK remarketing division sold 956,000 vehicles, the international remarketing division sold 347,000 vehicles and We Buy Any Car sold 194,000 vehicles.
BCA acquired Paragon Group, the de-fleet and refurbishment vehicle services provider in July 2016 and also acquired alloy wheel refurbishment business Supreme Wheels Direct in March this year.
Avril Palmer-Baunack, BCA Marketplace executive chairman, said: “The new financial year has started well, with performance since the year end being in line with our expectations.
“Growth continues with a combination of new business wins and organic growth with existing customers. These developments, together with further planned improvements in operational efficiency through our Together for Growth programme, continue to give the board encouragement for the future.”
WeBuyAnyCar celebrated its 10th year with its one millionth vehicle purchase. It grew its volume sales by 22,000 units (12.8%). The average time to sell a car that came into the WBAC business was 10 days.
Vehicles purchased in the year ranged in age from a 27 day old Vauxhall Viva to a 27 year old Suzuki Vitara and in price from a £50 Toyota Starlet to a £150,000 Rolls-Royce Wraith Coupe.
During the second half of the year, BCA Marketplace completed a refinancing of the business providing a new increased debt facility of £250m term loan and £250m of revolving credit facility, an extended period and at an improved margin compared with the previous facility.
During the period BCA generated £138.3m of cash flow from operations (2016: £89.9m) and ended the period with net debt of £260.5m (2016: £170.7m).
BCA Marketplace's definition of net debt excludes the debts relating to BCA Partner Finance and finance leases, as these are funded under separate asset-backed lending agreements.
Risks and uncertainties
Palmer-Baunack said: “Following Article 50 the group recognises it is operating in a period of increased uncertainty.
“The group has a direct presence and trading relationship in a number of EU countries and the board believes Brexit will not significantly impact the group’s ability to conduct business into or out of the EU in the short to medium term.”
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