Motor 150 Report 2017
08 November 2017
The Motor 150 Report 2017 reveals the aggregated performance of the top 150 companies in the UK motor retail sector.
The group’s turnover has increased by over 7% to £62.8bn during 2016 though continuing pressure on margins meant a fall in net margin from 1.57% to 1.53%. However, this increase represents a peak in the sector’s performance and 2017 has seen the start of the descent.
Key findings, which are discussed in the report in more detail, include:
- Turnover and profit have increased to record levels for the BDO Motor 150, but it is the larger groups that have driven this continued growth
- The larger groups saw an increase in turnover of 8% whilst the smaller groups less than 1% as they continued to struggle under the weight of preregistration targets and dealer standards requirements
- Consolidation in the sector has reached an all-time high, principally driven by a large increase in deals by privately-owned corporates as opposed to the ‘usual suspects’ of listed companies
- There is plenty of uncertainty and challenges ahead for dealers due to Brexit, the weaker pound, interest rate changes and changing customer behaviours
- The new Corporate Criminal Offence regime and General Data Protection Regulation will shortly come into force, this could have a big impact on the controls and procedures adopted by dealers to avoid potential penalties
- Customers are becoming more digital in their approach to buying their next car or booking a service – dealers need to embrace this new ‘digital mindset’ to enhance the customer buying experience and adapt to changing attitudes.
If you would like to discuss the report further or any wider sector issues, please contact Malcolm Thixton, Head of Motor Retail or speak to your usual BDO adviser.
The Motor 150 Report is published by BDO annually and aims to provide a considered insight into recent economic events and sector activity, the current and future dynamics of motor retailing, and to offer our professional view and advice for the future. Visit our Motor Retail page for more information.