Directors at Holdcroft Car Dealer Group Give Themselves 345% Pay Hike Despite Profit Decline
The recent news of directors at car dealer group Holdcroft giving themselves a 345% pay hike despite a decrease in pre-tax profit has sparked controversy and raised eyebrows. The newly published accounts for the year ended December 31, 2023, show that while the firm’s revenue increased by 13.7% to £750.3m, its profit before tax actually fell by 21.3% to £8.04m.
This significant pay increase for directors, with the highest-paid director receiving £268,067, has left many questioning the decision-making process within the company. The fact that dividends paid during the year totalled £3,812,100, but the directors recommended against a final dividend, adds another layer of complexity to the situation.
In the midst of these financial figures, Holdcroft’s strategic report sheds light on the challenges faced by the company in the retail motor sector. The retraction of volumes for certain brands, such as Honda, coupled with external factors like interest rate increases, have put pressure on the company’s profitability.
Despite these challenges, the directors remain optimistic about the company’s future. They believe that despite the financial results being less than previous years, the company is on a firm footing to tackle the changes in the automotive landscape in the coming years.
Holdcroft’s long-standing history, spanning almost 60 years, and its presence across 28 sites in the Midlands and north-west of England, representing a variety of brands, showcase its strong position in the market. As the company navigates through the evolving automotive industry, it will be interesting to see how it adapts and thrives in the face of adversity.
Overall, the story of Holdcroft’s directors’ pay hike amidst a decrease in profit serves as a reminder of the complexities and challenges faced by businesses in today’s ever-changing economic landscape. It prompts us to question the balance between rewarding leadership and ensuring the financial health of the company.