Local motor group Swansway has reported a profit of £14.4 million in its annual financial results for 2023, which after a goodwill amortisation of £1 million, resulted in a pre-tax profit of £13.4 million.

Swansway Motor Group Directors believe that this is a strong financial result, given the black backdrop external to the automotive industry, including factors like the ongoing cost-of-living crisis and increased interest rates. When reflecting on factors within the automotive industry, 2023 saw an environment where vehicle supply began to normalise, and the trade began to wrestle with electrification.

The motor group saw a turnover of £941 million, a 14% increase on 2022's turnover, an EBITDA (earnings before interest tax and depreciation amortization) of £24 million, and a gross profit of £58 million.

The Swansway Directors are pleased to report that 2023 saw new car volume rise to near pre-pandemic levels, whilst used car sales increased by 7% as a direct year-for-year comparison. The group will continue to place a huge focus on the used car area in the coming years as the industry moves towards an agency model.

Non-stakeholder borrowings decreased from £17 million to £14 million in 2023, aligning with the group's strategy to reduce the interest burden on the business going forward.

Swansway Motor Group director Peter Smyth commented on the performance: "Whilst profits declined when compared to 2022, we are starting to see the industry 'normalise'.

"We are on a strong financial footing with £68 millionworth of net assets, and we are poised at short notice to make the most of any opportunities that present themselves whilst the industry consolidates."