Worcestershire car dealer faces uncertain future

A Kidderminster car dealership is facing further trouble after it gave notice of its intention to appoint administrators.

CMS Kidderminster, a Vauxhall franchise, sells new and used vehicles, accessories, parts and servicing.

In its accounts ending December 31 2021, the firm’s directors discovered an unexplained discrepancy of £3,689,292, in relation to a stock contra account.

After “several detailed investigations”, the Directors were unable to provide sufficient evidence to support the stock.

Accountants Ballards said in the report: “The Directors are continuing to investigate the stock difference and have engaged with professional advisors in order to determine the appropriate accounting treatment”.

But the error did not impact trading ability, as the group saw a profit of £368,899 for 2021.

The firm also struggled throughout the Covid-19 pandemic, with a reduction in employees to 79, a lack of skilled trained people to employ and a global parts shortage.