Renault Retail Group’s profit surges to £ 35m due to dealer sale

Due to a major real estate disposal in West London, the Renault Retail Group’s profits surged to £ 34.8m in 2020 with sales of £ 398.5m.

This is in contrast to 2019, when sales were £ 501.8m and pre-tax losses were £ -2.4m.

As part of the company’s restructuring, it sold its flagship dealer in West London for £ 39m in 2020. This was followed by the disposal of Willenhall dealers for £ 2.5 million and Leicester dealers for £ 3 million in 2021.

We will invest in two new sites in West London and plan to open in January 2022.

The Renault Retail Group accounted for 19.9% ​​of Renault and Dacia sales in the United Kingdom in 2020.

The number of used cars decreased by 16.3% annually, compared to 14.9% nationwide.

He said he has almost lifted his reliance on new cars and has continued to focus on old cars over a period of three to five years.

RRG is planning to return the group to an average net income of 1% through structural changes.

“Part of this strategic plan includes resizing the West London business, including the sale of the West London site for £ 39m in September 2020 and a two-year leaseback with a £ 1 annual rent. It will be.

“This sale brought fixed asset profits to £ 38.6m and restructuring costs, including agents, to £ 599,000. This strategic plan is in line with the Group-wide rehabilitation strategy.

“This year, the company’s actions to increase working capital and dispose of its western London premises returned the company to a positive equity position that year, increasing its cash reserves to £ 16.5 million.

Further measures in 2021, such as a reduction in equity holdings and the sale of the Leicester and Willenhall businesses, further increased cash reserves by £ 3.4 million. This means that the total cash reserves at the end of August will be £ 19.7 million. “

The company has reduced its annual energy consumption by 35.7%, compared to its 13.2% target. The company said it would continue partial work from housing policy and significantly reduce the company’s fuel usage.

Renault Retail Group’s profit surges to £ 35m due to dealer sale

Source link Renault Retail Group’s profit surges to £ 35m due to dealer sale

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