Game of two halves for car dealer Williams

NORTH West BMW, Mini and Land Rover dealership Williams Motor Co (Holdings) saw profits fall 42% in 2010 as consumers cut spending after the Government’s austerity measures were introduced.

The family-owned Bolton-based company, which has around 20 sites around the region, described 2010 as a ‘year of two halves’ – which began well, but ended in decline.

Turnover in 2010 rose 7.6% to £240m from £223m in 2009, but operating profits dived 27.4% to £3.3m and pre-tax profits 41.9% to £2.1m.

Summing up the contrasting fortunes of the year, Williams’ directors said the business had benefited from the previous government’s scrappage scheme to boost demand in the automotive sector in the early part of 2010.

“2010 was a year of two halves, starting well but then declining as the scrappage scheme was withdrawn and market conditions deteriorated following the general election and the announcement of the Government’s austerity measures.

“2009’s result also benefited from substantial manufacturer support which was not forthcoming in 2010.”

Williams, which had around 530 staff at the year end, said BWM sales had grown 10% overall with corporate sales performing strongly but retail sales falling due to low consumer confidence.

Sales of Minis slid 10% as the brand saw retail customers fall, while Land Rover had a strong year due to new launches and bad weather which boosted sales.

Other highlights in 2010 were the acquisition in August of the David Holmes BWM and Mini dealership in Stockport, a deal which added sales of £16.5m and profits of £116,000 in the last third of the year.

Looking ahead into this year the group said it expected growth to be tough with the full force of the Government’s austerity measures set to hit home.

It said some growth was expected – notably from the David Holmes business and from the launch of the new Range Rover Evoque, which is pre-sold to March next year.