LNT Group sees turnover increase put pre-tax profits dip

LNT Group, which has increased its turnover but seen pre-tax profits dip to £430,000, has recorded the first year of profit for its Ginetta Cars division of the business.

Accounts filed at Companies House for the year up to 31 March  2017 show that turnover  stood at £80.6m; up from £75.9m last year. Pre-tax profit for the year was £430,000; down from £7.7m in the previous year.

The LNT Group is a fast growing group of companies owned by serial entrepreneur, Lawrence Tomlinson. Based in Yorkshire, the LNT Group encompasses five core businesses across a range of diverse sectors including Ideal Carehomes, LNT Construction and LNT Care Developments, LNT Software, LNT Solutions and Ginetta Cars.

The combined turnover of LNT’s care home development businesses, LNT Construction and LNT Care Developments, increased by 56% to £38.6m in 2017 with profit increasing to £2.2m. The firm said that 2018 is set to continue the positive trajectory as LNT Construction has started the year on almost double the number of sites, with all current sites pre-sold by LNT Developments.
LNT Group sold a large proportion of its Ideal Carehomes portfolio in 2015, which the company said was reflected in its turnover due to the reduced asset base, but that underlying profitability across all businesses within the Group improved during 2016/2017.

In its accounts, LNT also report that Ginetta made good progress in growing its markets and increased turnover by 49% to £9.2m. International exports accounted for 28% of all Ginetta’s new car sales in 2017 due to the expanding model range in to sports prototypes and the competitive success of their GT4 model globally.

As a result, Ginetta made its first gross profit in the year. The company said this demonstrated that the long-term strategy of sustained investment in product range, and manufacturing capability, is on course to deliver a programme of improved profitability in future years.
The LNT board, led by chief executive Matt Lowe, reported that the Group has delivered its strategic plan of refocussing the care part of its business both as an operator and a developer. The strategic plan also included the sale of non-core businesses, such as the successful sale of LNT Solution’s North American runway de-icing division, which was sold in November 2016.

Lowe said: “The success across the Group this year has exceeded our expectations in a number of key areas. We have a long-term vision for LNT which we have made significant progress towards this year.

“Working across such diverse sectors means no two days are the same at LNT but the love of variety and entrepreneurial spirit that runs through the Group is palpable as soon as you walk into the building. I am continually reminded of our employees’ ability to react to the changing environments in which we find ourselves, taking hold of opportunities and moving the business forward at pace.”

LNT has continued to invest in Ideal Carehomes to provide the business with good foundations to secure long term sustainability and profitability of the business. Ideal Carehomes has recently opened a new home in Rothley as part of the businesses plans to increase the concentration of its portfolio in the Midlands and the South, strengthening the business’ growth capabilities for future years

Lowe added: “It’s pleasing to see the investment in Ginetta translating into profitability We are still building our car range – with our new LMP1 to race in 2018 – but with our international reputation already firmly secured, we now have the technical and manufacturing capabilities to meet demand and take our place as a leading global race car brand.
“Part of our investment in Ginetta has also been the acquisition of Blyton Park circuit which will give many more people the opportunity to experience life in the fast lane behind the wheel of a Ginetta. We have already introduced the opportunity to hire cars and host corporate days, as well as driver training for the more advanced track day enthusiast or seasoned racing driver.”
The other core businesses in the LNT Group also grew well during the year. Turnover for LNT Solutions’ UK and European division increased by 7% in 2017 and LNT Software increased its external turnover by 9%.