One of Yorkshire\u2019s longest-established family-owned motor retail groups has reported record turnover but suffered a sharp fall in pre-tax profits as higher sales failed to translate into stronger returns.<\/p>\n
Leeds-based D. M. Keith, which celebrates its 80th anniversary this year, increased turnover by 17.1% to \u00a3435.1m in the year to 31 December 2025.<\/p>\n
But pre-tax profits plunged 88% from \u00a32.56m to \u00a3309,000, marking the sharpest annual decline in the six-year period covered by its recent results.<\/p>\n
The group blamed challenging market conditions and a broader downturn in the motor retail sector, with director Dougal Keith saying conditions had affected performance across much of the industry.<\/p>\n
D. M. Keith sold 19,516 vehicles during the year, up 17.9% on 2024. New car retail sales rose 36.7% to 7,553 vehicles, while used car volumes increased by 5% to 2,570.<\/p>\n
But higher volumes failed to boost profitability. Gross profit fell from \u00a324.1m to \u00a323.5m, while operating profit more than halved from \u00a33.25m to \u00a31.49m. Finance costs rose from \u00a3966,000 to \u00a31.37m, helping drive after-tax profit down from \u00a31.77m to just \u00a343,989.<\/p>\n
Fleet sales also declined by 18.4% to 3,515 vehicles, principally because of fewer Volkswagen Group fleet deals.<\/p>\n
Turnover growth was supported by a full year of trading at the group\u2019s BYD dealerships, including sites opened towards the end of 2024 and in early 2025, alongside contributions from businesses acquired in 2024.<\/p>\n
The six BYD dealerships remain in a growth phase, according to the directors. The group expects profitability to improve as the sites build market share and customer retention, with more vehicles on the road also creating opportunities for aftersales work.<\/p>\n
D. M. Keith is seeking to reduce its reliance on individual manufacturers by broadening its portfolio, with partnerships involving brands offering expanding electric vehicle ranges intended to help it respond to changing consumer demand. The expansion of its Changan network forms part of that strategy.<\/p>\n
The group added Changan dealerships in Leeds, Wakefield and Bradford during 2025, opening a fourth site in Sheffield in early 2026. It also expanded its aftersales operation through the acquisition of JAM300 Limited, a Subaru and Mercedes-Benz authorised repairer, in March 2026.<\/p>\n
Despite the latest profit decline, turnover has grown substantially in recent years, rising from \u00a3124.3m in 2020 to \u00a3394.1m in 2024 before reaching \u00a3435.1m last year.<\/p>\n
Founded by Duncan Keith in Leeds in 1946, the business began as a vehicle servicing and repair operation before moving into car sales. It became closely associated with \u0160koda after taking on the Czech manufacturer\u2019s vehicles in 1976.<\/p>\n
The group has since expanded into a multi-brand dealership business operating across Yorkshire, Lincolnshire and Greater Manchester. A significant step came with the acquisition of Ringways Motor Group in 2021, which broadened its dealership network and manufacturer relationships.<\/p>\n
It now represents established manufacturers alongside newer entrants to the UK market, including BYD and Changan.<\/p>\n
D. M. Keith employs around 660 people and is led by founder Duncan Keith\u2019s sons, Dougal and Angus Keith. It remains privately owned by the family.<\/p>\n
<\/p>\n
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D. M. Keith has driven turnover beyond \u00a3435m, but pre-tax profits have slumped to just \u00a3310,000 as challenging market conditions and rising costs hit returns<\/p>\n","protected":false},"author":271992,"featured_media":2161469,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53262,47995],"coauthors":[137100],"class_list":["post-2161448","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-retail","tag-featured-story","tag-top-story","tag-yorkshire"],"yoast_head":"\n