Motoring

Published: October 21, 2019 | Updated: October 21, 2019

Motor group Breeze hits storm winds to record £488,000 loss (but turnover rises to £80m)

Breeze’s Tower Park site in Poole. The company recorded a pre-tax loss of £488,727 in the 12 months to December 31, 2018
By Andrew Diprose, editor

One of Dorset’s biggest motor groups crashed into the red by more than £488,000 in its last financial year.

VW dealer Breeze Motor Company Ltd recorded a pre-tax loss of £488,727 in the 12 months to December 31, 2018.

That compares with a pre-tax profit of £309,370 in the previous year.

Turnover increased by just over £2m to £80,369,145 (2017: £78,281,200).

The company, based at Tower Park in Poole, is controlled by director John Corderoy, 56, who holds 100 per cent of the shares.

His remuneration last year was £450,855 (2017: £561,930).

In his strategic report, which accompanied the full-year accounts filed with Companies House, Mr Corderoy said 2018 had begun “exceptionally strong” for new car sales with a very positive first quarter.

But as the year progressed, the model range rationalisation started to cause production issues which, in turn, led to extended lead times and consumer frustration due to the Worldwide Harmonised Light Vehicle Test Procedure (WLTP).

WLTP is a global, harmonised standard for determining the levels of pollutants, CO2 emissions and fuel consumption of traditional and hybrid cars, as well as the range of fully electric vehicles.

Mr Corderoy said: “New vehicle sales were heavily impacted in the second half of 2018 due to the introduction of WLTP.”

The contribution from the company’s commercial vehicle fleet operations “increased significantly” during 2018 but showroom sales declined as Breeze continued to build its sales teams for the future.

Used vehicle performances across the group were described as “erratic” but aftersales was “consistently strong” throughout 2018.

Turning to the future, Mr Corderoy said the company’s key strategic focus areas were used vehicles, aftersales and the commercial vehicle fleet.

The gross profit margin for 2018 was 5.6 per cent (2017: 6.8 per cent) while the operating margin was -0.2 per cent (+0.8 per cent).

The company employed a total of 206 people during the year, an increase of eight on the previous 12 months.

The group’s auditor, Mazars, and its associates, were paid £34,100 for auditing the group’s annual financial statements and a further £13,250 for taxation compliance services and other services.