The holding company behind one of Northern Ireland’s best-known car dealerships has reported pre-tax profits of just over £1m for 2023.
The financial statements published at Companies House by SERE Holdings last month show that revenue went up by 20% from £62m to £74.2m.
And it turned round a loss of £463,300 to achieve pre-tax profits of £1.3m.
At subsidiary company SERE Ltd, revenue had climbed from £46m to £55.7m, although pre-tax profits dropped from £807,000 to just under £531,000.
SERE Motors has two premises: one on the Boucher Road in Belfast and another at Lissue Industrial Estate in Lisburn.
Among its new-car brands are Seat and KGM, though it offers a wider range of used cars.
Over the year, the cost of sales at the holding company climbed from £53.3m to £59.7m. Net assets were £6.5m, up from £5.5m in 2022.
The group also operates in parts, servicing, bodyshop services and medical transport.
The business was set up in 1990 by Stanley Edgar, who is now company chairman, and, according to its website, reached £40m in turnover in its first six years. It was also one of the first companies to be listed in The Sunday Times Fast Track. Its name comes from the initials of Mr Edgar and his wife Rosemary.
In a strategic report filed with the accounts for SERE Holdings, the directors said they considered the performance over the year, and at year end, to be satisfactory, adding that they were committed to creating long-term shareholder value through organic growth.
“While the incoming year is likely to be very challenging, both because of increased competition and the economic climate, early results are satisfactory and the directors will closely monitor current performance,” they said.
The accounts for SERE Holdings added that the group had “experienced the impact of inflationary pressures during the year, which was a contributing factor to the strong revenue growth delivered, and due to synergies brought about by previous business combinations, the group has been able to improve its gross margin”.
Key business risks and uncertainties facing the group in future related to the current economic environment, competition from other car dealerships and medical transport companies, supplier stability, employee retention and franchise support.
It stated that the directors did not recommend the payment of a dividend.
Its £74m turnover was made up of £57.3m from sale of goods, up from £45.8m the year before, while it made £16.4m from providing services, up from £15.8m.
Staff numbers had grown from 247 to 259 over the year, with its pay bill rising from £6.8m to £7.5m.
In 2011, Mr Edgar said in an interview that he had fallen into car sales “by accident”. After completing training for his pilot’s licence in 1990, he faced a recession in aviation, prompting him to go into car sales instead.
At one point the business had seven sites in Northern Ireland, before reducing its numbers to two.
He said at the time: “The skillset required to operate a company of this size was completely different and that, combined with some external factors, meant that we learned our lessons the hard way.
“We consolidated our management team, reduced site numbers and managed to survive through that difficult time.”