North East motor dealer Richard Hardie is gearing up for growth on the back of buoyant used car sales and its expanding online business, after seeing turnover and profits drop in latest accounts.
The Sunderland-based motors group says it has been working on a new strategy to work with fewer dealerships over the last year, while also investing in online marketing, used car sales and a push on new marques.
The family business, which has been trading for more than 50 years, said the strategy was proving successful, driving the firm back into profit after seeing a fall in 2019.
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The firm has published accounts for 2019 showing a 30.5% fall in turnover from £51.6m to £35.8m, while its operating loss also widened from £173,325 to £692,812. The overall loss for the year also more than doubled from £216,025 to £450,013.
During the last 18 months, and against a difficult national backdrop for the motor trade coupled with the impact of Covid-19, the firm said its new strategy was paying dividends.
Following the lockdown and the closure of the business for three months, used car sales are reaching record numbers, it said. Sales for its new MG range of models are also growing by the month.
Richard Hardie, which operates from three dealerships in Sunderland, Ashington and Silverlink in North Tyneside, disposed of two sites, including one in Durham and a struggling site on Scotswood Road, Newcastle before the end of last year. The firm saw its employee numbers drop from 125 to 93 as a result.
Managing director Philip Hardie said: “The Newcastle site just didn’t work for us and with the poor sales from the Alfa Romeo and Jeep brands it was a big drain on the business.
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“Too many dealerships were taking up too much resource and management time and we knew we had to focus on our core dealerships and key strengths.
“The shift to focus on our stronger franchises while investing in growing used car sales and our online business has really paid off and is helping us pull through this difficult period for the 海角视频 motor trade. We fully expect to end this year in profit and in a much stronger position than at the end of last year.”
Investment in the company website means people can now buy a car through the site and are able to do the whole transaction online.
Sales director Nick Hardie said: “Since reopening after the first national lockdown used car sales have seen a real boom. We sold 969 used cars between the two lockdowns this year.”
Richard Hardie is now one of only a few independent family-owned motor businesses in the North East following the acquisition of many by the big national retail groups.
Daughter and marketing director Rachel Hardie said: “We’re proud of our family roots and the company’s history.
“Our strong family ties and ethos run through the business; we’re proud of our staff and the fact so many have remained loyal and been with us through the good times and the more difficult recent years.
“We’re seeing some positive signs in a difficult market. Online marketing is now such a big feature of the motor trade. Our investment in this area is part of our drive to broaden customer choice. Showrooms are still important but more viewings and research, along with transactions, are taking place online.”