Gates Ford Reports ‘Mixed’ Financial Performance in 2023: Pre-Tax Profit Drops by Nearly Half
Gates Ford, a well-established car dealership with a history dating back to 1920, recently released its financial results for the year 2023. The directors described the performance as ‘mixed’, with a significant drop in pre-tax profit despite an increase in turnover.
The company reported a pre-tax profit of £3.3m, down 49.2% from the previous year’s £6.5m, on a turnover of £211.3m, representing a 7% increase. The gross profit margin also decreased from 15% to 13%, with market changes being cited as the reason for the decline.
Despite the challenges faced, Gates Ford remained financially robust with a net asset value of £11.17m, up from £10.97m in 2022. The directors acknowledged the impact of economic factors and government policies on overhead costs, leading to a ‘considerable market adjustment’ in the second half of the year.
Looking ahead, the board expressed cautious optimism for the future, noting strong performance in the first quarter of 2024, especially in new vehicle sales. They anticipated stabilization in used vehicle pricing and inflation, with potential interest rate reductions.
However, challenges loom on the horizon, including potential modifications to Ford’s franchise agreements and disruptions caused by product quality issues and vehicle recalls. Despite these obstacles, Gates Ford remains committed to providing quality service to its customers.
With nine showrooms, FordStores, and Transit Centres across Essex and Hertfordshire, Gates Ford continues to adapt and evolve in the ever-changing automotive industry. The company’s strategic decisions, such as opening a group vehicle preparation centre and relocating operations, demonstrate its commitment to growth and innovation.
As Gates Ford navigates the challenges of the automotive market, one thing remains clear – their dedication to providing exceptional service and quality vehicles to their customers. Stay tuned for more updates on Gates Ford’s journey in the coming year.