Heritage Automotive Cuts Expenses to Five-Fold Profit Growth in 2021

Heritage Automotive highlighted the role played by “significantly improved margins” and reduced administrative expenses by recording a five-fold increase in pre-tax profits in 2021.

Based in Wiltshire Automotive Distribution Group AM100 succeeded in increasing its turnover by 3.9% from £169.5 million to £176.1 million in the period ending 31 December 2021, despite the sale of its concession Cheltenham Jaguar Land Rover (JLR) at Marshall Motor Group.

A reduction of £823,000 in administrative costs resulting from the transaction and its integration of the Blade Motor Group Skoda dealership into its existing Volkswagen dealership in Weston Super Mare, helped to bring pre-tax profits from £534,000 to 2020 at £3.33m.

Heritage also reported gross profit margin up 9.4% (2020) to 11.1.

The changes offset a reduction in government support for COVID-19, which fell to £510,000 from £1.98m in 2020.

Its earnings statement said: “Directors are encouraged by the current progress and commitment demonstrated by the Legacy team.

“The company continues to trade profitably, is well funded and will continue to capitalize on new business opportunities as they arise.”

Originally founded in 1996, Heritage was purchased by former Colborne Garages owners Richard Neulander and John Walsh in 2016.

The company has risen to the top half of AM100 franchise dealer groups since acquiring Blade Group in 2019.

A partner of the Volkswagen group, it also owns JLR and Honda franchises and retails several brands of motorcycles.

This year, the group also became a franchisee of the Ineos Grenadier 4×4.

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