Leicestershire's Sytner revs up record profit of £51m

The UK's second-biggest car dealership says it made a record profit last year and has seen strong demand over the past two months.

Sytner, of Enderby, said pre-tax profits for 2009 had increased by more than 50% to at least £51m, the highest figure in its 42-year history.

Managing director Gerard Nieuwenhuys said the success was down to the soaring price of second-hand cars.

"We had a record year last year," he said. "We haven't yet released the figures for 2009, but profits will be up more than 50% on 2008.

"The reason for this increase in profit is a very strong used car market. We had improved volumes and margins which helped to drive the overall bottom line of the business."

He added: "We are having a good start to 2010 and new car demand is pretty strong at the moment."

He said the new car market was down by 9% last year, in line with the rest of the market. Overall sales fell slightly, but still totalled about £2bn, similar to 2008.

"Used car values rose through 2009 after falling sharply in 2008 because of the credit crunch," said Mr Nieuwenhuys. "Now the difference between used and new car prices is roughly the same as it was before 2008."

The news came after the group was named the third best big company to work for in the Sunday Times.

"We were sixth last year and fourth the year before," said Mr Nieuwenhuys. "We are the only company to finish in the top six in the big company category for three consecutive years.

"I am delighted. This is a testament to the people who work for us. They have performed extraordinarily well in what has been a challenging time over the past 18 months."

Sytner employs 5,000 at 130 dealerships in the UK. About 500 staff are employed at six dealerships in Leicestershire, including the Bentley showroom in Syston and a Porsche business in Hamilton, Leicester.

"The profit numbers are great news from a business point of view," said Mr Nieuwenhuys.

"Our performance in the Sunday Times Best Companies to Work For list is also a great story."

The company faces tough market conditions in the coming months with the closure of the car scrappage scheme, tax rises and public spending cuts.

"It's difficult to predict how the second half of the year will evolve. There will be no shortage of challenges," said Mr Nieuwenhuys.

The company, based in Grove Park, was set up in 1968 in Nottingham by two-time British Touring Car Championship winner Frank Sytner and brother Alan. The group also sells other prestigious marques, including Mercedes, BMW and Land Rover.

BMW Leicester, at Meridian Business Park, near Braunstone, was named the group's best dealership of the year, based on profits, sales, customer satisfaction and employee satisfaction.

Last month, Sytner's Bentley Leicester, in Syston, dealership revealed plans for a £1m expansion which would commit the business to the site for at least another 20 years.