
Top Performers in the Automotive Industry Revealed
In the latest release from Motor Trader, CEM Day has secured its spot as the top dealer group with an impressive return on sales of 10.6%. This achievement is backed by a robust turnover of £284.8 million and a pre-tax profit of £30.3 million. The group’s success is attributed to its diverse motor-related businesses that enhance its gross margins, including new and used car sales, van hire, and finance solutions.
Highlights from the Rankings
Following CEM Day, the Mitchell Group ranked second with a commendable return on sales of 4.8%, alongside its turnover of £74.2 million and profit of £3.6 million. Notably, they also contributed significantly to charities, demonstrating their commitment beyond just profit. Other noteworthy mentions include the Porsche Retail Group and Currie Motors, ranking third and fourth respectively.
Long-Standing Excellence
Chris Oakham, the report author, highlighted the remarkable performance of dealer groups, noting that five of them have consistently featured in the top rankings for over a decade. These include brands such as McLean & Appleton and FRF South Wales, showcasing their resilience and adaptability in a competitive market.
Why Return on Sales Matters
Understanding return on sales (ROS) is crucial for investors and consumers alike. A higher ROS indicates a dealer group's ability to maximize profits from its revenues, which can reflect overall business efficiency and customer service quality. As the market landscape shifts, maintaining strong ROS can indicate a dealer group’s capacity to thrive amid challenges.
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