Inverness motor dealer Hawco and Sons sees trading results for 2022 ahead of budget
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Pre-tax profit increased by more than £1 million for an Inverness-based car dealership last year.
Turnover also increased at Hawco and Sons – a franchised motor dealer representing Volkswagen Group brands – according to its latest accounts for the year ended December 31, 2021.
A strategic report accompanying the firm’s figures stated: “While turnover increased by 6.2 per cent in 2021, it did not return to pre-pandemic levels. The government restrictions imposed in quarter one in response to rising Covid infections were a key factor in this.
“Throughout this period the business was limited to operating a click and collect service for vehicle sales and the aftersales departments operated at reduced capacity due to the social distancing requirements.
“In addition, new vehicle supply was constrained throughout 2021 due to the global semi-conductor shortage, resulting in a 5.2 per cent reduction in new vehicle sales volume.”
It went on: “Government grant income of £495,000 was received and released to profit and loss account. This was furlough scheme and strategic business fund grant funding received during the enhanced government restrictions.
“This enabled the business to break-even during this period, and preserve jobs, maintaining its workforce at an average of 186 employees.”
Turnover increased from £65,439,641 in 2020 to £69,502,319 last year. For the same period, pre-tax profit rose from £233,307 to £1,325,317.
The average number of employees stayed at 186 last year, while staff costs increased from £5,549,807 to £5,750,526.
The report added: “Maintaining a highly skilled, motivated and valued workforce is integral to the success of our business, and in delivering an excellent customer experience.”
It went on: “In 2020, we added Skoda to the Volkswagen brands we represent, when we became an authorised repairer, providing aftersales services from our main Volkswagen facility in Inverness. We have furthered our relationship with Skoda in 2022, having signed a sales agreement and commenced trading in August, Volkswagen passenger car and commercial vehicle products we offer as well as giving us better economies of scale.
“Trading results thus far in 2022 are ahead of budget, with half-year profits of £500,000. Trading will however be more challenging in the second half of the year with inflationary cost pressures, continued new vehicle supply constraints, the used vehicle market normalising and declining retail car parc [sic] impacting workshop throughputs. We have however planned for this, have identified opportunities and are adapting our trading model accordingly. The directors therefore have confidence that they have robust plans in place and a skilled management team that will deliver their 2022 budget ambition.”
A directors’ report alongside the accounts stated: “The company is committed to minimising our environmental impact and we actively promote this culture to our staff. Our business activity relating to electric vehicle sales assumes an ever-increasing proportion of our total sales. We are investing in facilities, equipment and tooling together with staff training to maximise sales of these models.”
