Williams profits fall in ‘year of two halves’

NORTH West independent car dealership company Williams – which sells  BMW, MINI and Land Rover at seven sites across the region – saw annual profits fall by more than 20% last year as austerity measures and the euro zone crisis hit consumer confidence.

The family-owned, Bolton-based group which also has a motorcycle dealership, described 2011 as a “year of two halves”.

Results for Williams Motor Co (Holdings), show that despite a 14% jump in turnover, from £240m to £273.7m, profits fell 24.1% to £1.6m from £2.1m in 2010.

The group, which has 580 staff across the region, said: “2011 was a year of two halves, starting well but then declining as market conditions deteriorated due to the problems in the Eurozone and the impact of the Government’s austerity measures.”

While BWM new car sales were 19% ahead, retail sales came under pressure due to low consumer confidence, Williams said.

In contrast there was “significant” growth in corporate sales as businesses upgraded their ageing fleets, but this was not reflected in higher profits as corporate sales attract lower margins.

While MINI sales were 16% ahead, turnover at Williams Land Rover – the group’s dealership in Hulme, Manchester, was down 3.6% as a result of “production delays on the new Evoque”.

Looking ahead to this year, Williams says it “continues to struggle for growth” with the Government’s austerity measures continuing to bite, and the euro zone issues remaining unresolved.

“Nonetheless some improvement in profitability is expected as we benefit from sales of the new Land Rover Evoque and the new 3 Series BMW which was launched in February.

“We will also benefit from substantial interest savings due to the new interest rate swaps put in place during the year.”

The company said it would be refurbishing its Liverpool showroom this year.