Rapidly falling used car values impacted profits at Barretts of Canterbury last year. The group saw pre-tax profits fall 56.9% to £2.2m on turnover up 6% to £276.5m.
Last year Barretts of Canterbury sold 2,540 new cars, an increase on the 2,260 units sold in 2022. Used car sales declined to 2,740 compared to 2,960 the prior year. Aftersales turnover rose to £56.1m from £50.1m.
In 2023 it closed its Citroen and DS dealerships in Canterbury, ending a 20-year relationship with the brand. It now holds the franchises for Jaguar and Land Rover, BMW, MINI and Honda with dealerships in Canterbury and Ashford. It also has a body shop in Ashford.
“During the year the company has seen return to more normal trading conditions following the COVID-19 pandemic. New car supply has improved markedly, it said in accounts filed at Companies House.
“This has in turn led to unit prices and margins on used cars falling from the exceptional levels seen in the COVID-impacted prior years as supply and demand have fallen into line.
“We continue to grow out aftersales business, including substantial parts distribution activities,” it said.
The headcount was unchanged at 472 (467). It commented on the issue of training and staff shortages.
“As in many sectors we have found it difficult to recruit qualified staff with the appropriate level of skills.
“With this in mind the board has committed to a programme of apprentice ship training and other training across all levels of the business.
“At the year end 25 apprentices were employed in various functions within the business.”