Riverside Motors Sees Pre-Tax Profit Rise in 2023, Reversing Previous Year’s Fall
Riverside Motors, a prominent new and used car dealer group, has seen a significant increase in its pre-tax profit for the year 2023, marking a positive turnaround from the previous year. The latest financial accounts for Riverside Motors Holdings reveal that the company’s profit before tax rose by £410,000, reaching £6.03 million compared to £5.62 million in 2022. This impressive growth in profit was supported by a 20% increase in turnover, which surged from £209.92 million to £252.2 million.
One of the key factors contributing to Riverside Motors’ success was the improvement in its gross profit margin, which rose from 4.9% to 5.3%. This positive trend is a testament to the dealership chain’s strong performance and strategic decision-making. In contrast to the previous year, where the company experienced a nearly 20% decline in pre-tax profit, the 2023 results showcase a resilient and thriving business.
A notable development in 2023 was Volvo’s transition to the non-genuine agency model, impacting Riverside Motors’ revenue recognition for vehicle sales. Despite this change, the directors remain optimistic about the company’s financial strength and growth prospects. With a net asset value of £24.47 million and a commitment to exploring new market opportunities, Riverside Motors is poised for further expansion in the coming months and years.
The dedication of Riverside Motors’ team is evident in the increase in the average number of employees from 220 to 253. The directors’ unwavering focus on financial stability and growth is reflected in their decision to maintain directors’ remuneration at the previous year’s level while distributing dividends totaling £1.38 million.
As Riverside Motors continues to navigate the dynamic automotive industry landscape, its commitment to seizing market opportunities and driving growth remains unwavering. With a diverse portfolio of brands, including Volvo, Polestar, Seat, Honda, and Cupra, Riverside Motors is well-positioned to capitalize on emerging trends and customer preferences.
In conclusion, Riverside Motors’ impressive financial performance in 2023 underscores its resilience, strategic vision, and commitment to excellence. As the company looks towards the future with optimism and determination, it is poised to achieve even greater success in the years ahead.