Record sales and strong profitability for car dealer

Swansea-headquartered car retailer Day’s Motor Group has reported “a record level of turnover and strong profitability” in its latest results, despite a competitive new car market.
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The group has sites in Swansea, Haverfordwest, Llanelli, Neath and Cardiff, employing more than 600 staff. It has authorised new, used and commercial dealerships for Ford, Peugeot, Fiat and Iveco.

The latest accounts for CEM Day Ltd show turnover rose to £232.3m in the year ending 31 December 2016, up from £230m in 2015. The directors said they were “pleased” with the 2016 results thanks to the “record level of turnover and strong profitability”.

The growth in turnover was mainly due to increased revenues from used vehicle sales. Profitability was affected by an increase in overheads compared to 2015.

In their report accompanying the results, the directors said: “In a very competitive new car market the company has managed to maintain profitability as well as producing a strong performance in used car sales.

“Vehicle service and aftersales continued to be challenging as a result of the greater reliability of modern vehicles, which can impact specifically on service and warranty work. Despite this, in 2016 the group was able to increase revenues from aftersales activities.

“The group’s property portfolio is an important aspect of the business and its strategy is to proactively seek to acquire new trading premises to facilitate the continued expansion of the group’s activities.”

Vehicles numbers continued to grow in Days’ fleet business thanks to both new and existing customers. The group continues to invest resources to identify new markets and products to maintain this growth.

The directors added: “The group will continue to focus on sustained profitability and growth within its existing core franchise operations.”

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