IN its 16th year of trading, the Peter Vardy Group is pleased to announce significant growth and financial achievements in its annual company accounts. The Group’s Balance Sheet now demonstrates Net Assets of £97 million, reflecting its unwavering commitment to excellence and innovation in the automotive industry.
A Remarkable Journey
Over the years, the Peter Vardy Group has evolved from a single dealership in Perth in 2006 to a multifaceted organisation with diverse divisions. These include a luxury car division, volume supermarket division, a new Mobility Division, and a rapidly growing car finance broker, CarMoney. This remarkable journey is a testament to the Group’s vision, adaptability, and dedication to providing mobility solutions for everyone.
Positioned for Success
The Group’s future looks increasingly exciting, underpinned by its enhanced leadership capability and access to funds. It has secured a revolving credit facility for £25 million for a period of three years, with an option to extend for an additional two years and a £10 million accordion. Combined with used vehicle stocking facilities of £70 million, this provides the Group with access to £105 million in funding. These financial resources position the Group for substantial growth, aligning perfectly with its 2030 vision.
Launching Our Strategy for the Century
To mark its centenary, the Peter Vardy Group has undertaken a strategic review of its operations, focusing on future trends in the automotive industry. This includes considerations for Electric Vehicles, new car Agency Models, new Manufacturer entrants, and evolving mobility trends. The Board believes that 2022/23 are pivotal years in the Group’s transformation journey, and investments made during this period will enable scalable growth in the coming years.
2022 Results
The Group’s diverse portfolio of business interests has contributed to its strong performance. In 2022, the Group’s turnover increased by 5% to £609 million, with EBITDA of £16.1 million, resulting in a robust return on sales the equivalent of 2.6%.
The Motor Division
The Motor Retail division comprises six prestige dealerships, eight used car supermarket operations, all located throughout Scotland. The Group’s Motor Division remains focused on its 2030 Strategy’s six key pillars, which include Colleague Engagement, Guest Satisfaction, Manufacturer Scorecard, Financial Performance, Digital Sales, and Giving Back. Notably, the Group donated 10% of its profits to various charitable causes.
In 2022, performance within the Motor Group remained relatively static except for significant cost increases. The businesses generated a turnover of £590.5m up from £560.7m in 2021 reflecting a year-on-year uplift of 5.3% and an EBITDA of £11.9m (2021: £15.7m). Although turnover has increased, profitability has been impacted, due to a few significant factors.
The reduction in used car supply, and the resulting margin erosion impacted the Motor Group, with the majority of their retail outlets being the CARZ used car supermarkets.
In addition the increased operating costs, most notably interest rates, business and utilities rate and rising employment costs have also impacted the groups margin. The Group’s Board also generously provided a one-off cost-of-living bonus to all colleagues, at a cost of £1 million to support their personal cost of living increases. These items contributed an increased cost of £4.6m during the financial year, which largely relates to the reduction in EBITDA.
The motor group did however enjoy outstanding financial success across the year in their new car departments. The new car contribution to the Group’s profitability rose by £3.9m / 79.6% year on year.
The Mobility Division
Launched in 2021, the Mobility Division is integral to the Group’s 2030 strategy. The rental business, launched in January 2022, has seen remarkable growth, finishing 2022 with 630 vehicles on fleet, over 90% utilisation, and contributing a profit in its first year. Combined with the groups leasing broker offering the mobility division is the groups most successful startup, and therefore a business the board has signalled for significant growth in 2023. The Group’s investment in the ‘Mobility Fund’ and partnerships with global organisations position it to explore new business models in the ever-changing mobility landscape.
CarMoney
In 2022, CarMoney delivered record-breaking financial performance, generating a turnover of £18.7 million, representing a year-on-year uplift of 73%. Operating profits before taxation reached £4.1 million, reflecting a 24.2% increase. CarMoney has achieved substantial growth in both its B2C Division and Retailer Brokering Service Divisions. This success has prompted a significant growth strategy, including expansion into overseas markets and further investment in its direct to consumer brand.
Giving Back
The Peter Vardy Group remains committed to its purpose of “We Sell to Give.” In 2022, the Group’s efforts focused on supporting grant-giving for children in Scotland and Ukraine, with a particular emphasis on the the groups own start-up charity GEN+ program.
GEN+ aims to provide leadership and meta-skills training to over 250,000 children in Scotland, empowering them to make better decisions for themselves and their communities.
The Peter Vardy Group looks forward to a promising future as it continues to innovate, grow, and make a positive impact in the automotive industry and the communities it serves.
