Reg Vardy boosted by new dealership rules

UK motor dealer Reg Vardy today unveiled record profits and forecast further growth despite fears the new car market may have peaked.

The Sunderland-based group said it was gaining market share after new EU rules came into force last year which shifted the power balance between manufacturers and dealerships.

The changes to the Block Exemption Rules sparked a round of consolidation in the sector and helped Reg Vardy to snap up 18 new dealerships during the year to April 30.

Sales of brands such as BMW and Ford are now made from 91 sites in the UK and the group is speeding towards its target of 100 dealerships by the end of next April.

Pre-tax profits for the period accelerated to £46.3m (€69.3m) from £39.7m (€59.4m) a year ago, while the new dealerships helped turnover push ahead 22% to £1.61bn (€2.4bn).

But concerns that the market for new vehicles may be peaking followed a slowdown in registrations between April and June, especially in the private small car sector.

This led to group profits from new vehicle sales during the period falling below planned levels, although the motor industry expects a fourth consecutive record market this year.

Chief executive Peter Vardy said: “Our board believes the strategy of sustainable growth will ensure Reg Vardy is one of the dominant motor retailing brands in the UK.”

Reg Vardy operates dealerships in an area from Aberdeen to Reading and sells most of the major brands including specialist marques Aston Martin, Jaguar and Land Rover.

It also has a contract hire division that leases cars to companies on 36-month deals.