Peugeot dealship Simon Bailes Limited has seen a 175% increase in net profit as the motor industry begins to pick up.
Financial results for the year ended December 31, 2013, show the group - which has outlets in Northallerton, Guisborough and Stockton-on-Tees - grew profit on ordinary activities before tax from £428,219 in 2012 to £1,177,992.
As turnover increased 9.9%, going from around £45.1m to around £49m, gross profit was also boosted significantly, rising 17.9%, and leading to an improved gross margin of 9%.
A strategic report accompanying the results said: “2013 was a more positive year for the UK Motor industry, with total new vehicle registrations achieving 2.265m, which was up 10.8% on 2012 and was the highest annual registration total since 2007.
“However, Peugeot saw their own market share fall again, from 4.87% in 2012 to 4.66% in 2013, but actual units sold increased by 5.98% from 2012.
“Trading conditions remain challenging but improvements in the levels of business are becoming increasingly evident.”
The turnover boost, the report said, had been driven by a rise in new vehicle sales.
Used vehicle sales and the aftersales business, which offer vehicle repair and parts sales, also remained steady and are now showing signs of growth.
With a continued focus on cost control, Simon Bailes likewise managed to cut administration expenses by a further 3.7%.
The report said: “The directors are extremely pleased with the overall results in light of the challenging condition and recognise the contribution made from both managers and staff in achieving these results in a very competitive and tough market place.
“Weak economic growth and continuing lack of consumer confidence will continue to make trading conditions hard in 2014, but the directors are remaining positive and are working extremely hard with the whole team to ensure that results continue to be maximised.”