Bristol-based car and motor cycle dealers Drive Motor Retail have managed to stay in the fast lane despite the recession, pushing sales past the £200m mark in what they describe as a “difficult” year, notching up increases in new, fleet and used vehicle sales. The company was set by Paul Manning and Steve Bessex in 2003 following a management buyout of nine Arriva Vauxhall dealerships, one Kawasaki dealership and a trade and retail accessories division.
They have since bought a Chevrolet franchise in Leicester as well as Chevrolet and Hummer franchises while their Bristol motorcycle division is one of Britain’s biggest Kawasaki distributors. They have also acquired further Vauxhall and Masterfit dealership in Bristol.
But while their group drove up sales growth from £183m to £202m, pre-tax profits dipped from £2.5m to £2.1m. DMR, which employs almost 700 staff, says in its latest accounts: “The industry had a difficult year with new and used vehicles volumes being down on 2010 and continued pressure on workshop hours and parts sales. Against this background the group had a very good year, returning profits well ahead of our peer group in terms of returns on sales and capital employed.”
Total group vehicle sales were up from 14,498 to 15,379 while new vehicle sales edged up from 3,846 to 3,919. Fleet vehicle sales were healthier at 4,023 against 3,364 a year earlier while used vehicle sales were up from 7,288 to 7,437. Elsewhere, there was a decline of 2.4% in the sales of parts while trade sales dropped 5.5%.
“The strategy adopted during the year has been to build continually on the market position established by the group, together with the strong Vauxhall brand nationally,” according to the annual report.
The group says it will continue to follow a growth strategy based mainly on well-established models under the Vauxhall brand, including Insignia, Astra and Corsa “and the development of new models as they are launched”.
One bright spot was a rise in annual dividends from £1m in 2010 to nearly £3m last year.
