A North East motor dealership group says it is eyeing potential acquisitions after seeing turnover pass £100m.
Washington-based Sherwoods Motor Group – which has dealerships across Tyneside, Wearside and County Durham – has released accounts for 2024 in which turnover rose from £96.4m to £106.7m.
Over the same period, the company’s operating profit went from £1.5m to £2.2m, with particular growth in profitability in used cars and fleet sales.
Sherwoods said that the positive results came “despite the headwinds of high borrowing costs, general inflation and the difficulties associated with the ZEV (zero emissions vehicles) mandate.”
During the year it added the Fiat and Abarth brands at its Gateshead and Sunderland sites, and Leap Motors at Sunderland.
The accounts say: “We know 2025 is going to be tough with continued pressure on costs, interest rates still high customer uncertainty and alike but we have a strong well performing business and a robust balance sheet and will be more than able to ride out any storms.
“We also will be looking for further opportunities to grow our business should the opportunity arise in 2025 and we would by this time next year like to be able to report a new site to the group.”
The company works with brands including Peugeot, Citroen, Fiat, Suzuki and Isuzu. During the year its headcount grew slightly to 158 while its wage bill rose to £6.3m.
The automotive industry has faced a challenging period in recent years as the switch to electronic vehicles and wider woes in the Ƶ and global economy have affected sales. But there have been signs of recovery in recent months with figures last week showing that car production in the Ƶ rose for a second successive month in July. Government moves to ease the rules on electric vehicle sales and provide grants for people buying new EVs have been broadly welcomed in the industry.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said last week: “It remains a turbulent time for automotive manufacturing, with consumer confidence weak, trade flows volatile and massive investment in new technologies underway both here and abroad. Given this backdrop, another month of growing car output is good news – signalling the sector’s underlying resilience in the face of intense global competition. To unlock sustained growth, however, government strategies must become tangible actions as a thriving automotive sector can support well paid jobs and economic development across the Ƶ.”
