Overview
Stoneacre reported lower profit amid higher employment costs and the effects of the U.K.’s ZEV mandate, while growing revenue and strengthening recurring income streams in aftersales and parts.
Key financials
- Pre-tax profit: down 6.2% to £22.9m (year to April 2025).
- Revenue: up 3.6% to £1.4bn.
- Cost pressures cited: increases to the National Minimum Wage and employer National Insurance contributions.
- No redundancies; expenditure reviewed across the business.
Sales and margins
- New retail vehicles sold: 32,133.
- Used retail vehicles sold: 34,130.
- Like-for-like gross profit: up 6% on new and 5.9% on used, indicating improved unit margins despite wider inflation.
Operational actions
- All sales locations operated seven days a week to maximize revenue.
- Weekend vehicle servicing added at selected sites to protect workshop utilization and customer convenience.
- Spending reviewed to manage ZEV-related impacts; specific savings not detailed.
Franchise and brand portfolio
- Expanded ties with Renault, Nissan, Peugeot, and Vauxhall.
- New representations: BYD and Polestar.
- Agreements to represent: Jaecoo, Omoda, Chery, Geely, and Changan, further rebalancing toward electrified and value-focused entrants.
Aftersales, parts, and auction
- Aftersales revenue: up 10.4%; live service plans grew to 71,000, supporting retention and recurring income.
- Parts: turnover up 11.2%; direct profit up 9%.
- Auction (Newark): 34,373 vehicles processed, up from 31,082, reflecting healthy wholesale throughput and inventory discipline.
Policy context: ZEV mandate
The 2024 ZEV mandate sets rising targets for the share of new car sales that must be zero emission. While compliance sits with manufacturers, it influences model availability, pricing, and franchise strategies. Stoneacre’s broadened brand mix—especially BYD, Polestar, and incoming manufacturers—aligns showrooms with EV-oriented lineups.
People and training
The group maintained staffing and continued investing in its academy, with 80 apprentices in training, addressing ongoing recruitment and retention challenges for technical roles.
Outlook
Stoneacre provided no formal guidance but plans to sustain seven-day sales operations, continue weekend servicing at selected sites, and deepen manufacturer relationships to navigate cost and policy changes. Margin discipline, aftersales growth, and parts performance remain central cushions against cost pressures.
