Sytner Group, a luxury car dealership with historical ties to Liverpool's iconic Cavern Club, has reported a significant decline in profits for the 2024 financial year. Despite maintaining a turnover of nearly £7.3 billion, the company's pre-tax profits fell by more than 54% amid rising operational costs and strategic restructuring.
The group, founded in part by the original owner of the Cavern Club, Alan Sytner, saw its pre-tax profits decrease from £125.9 million in 2023 to £57.3 million for the year ending 31 December 2024. This financial performance reflects a challenging period which included a major acquisition and the closure of several locations.
Key Takeaways
- Turnover: Sytner Group's turnover for 2024 was £7.29 billion, a slight decrease from £7.43 billion in the previous year.
- Profit Decline: Pre-tax profits fell sharply by £68.6 million, from £125.9 million in 2023 to £57.3 million in 2024.
- Rising Costs: Operating profits dropped from £174 million to £114 million, largely due to a £69 million increase in distribution and administrative expenses.
- Liverpool Connection: The company was co-founded by Alan Sytner, who famously owned Liverpool's Cavern Club before selling it in 1959.
Detailed Financial Performance
Sytner Group's latest financial filings reveal a mixed but challenging year. While the company's revenue remained robust at £7.29 billion, this figure represents a modest dip from the record £7.43 billion achieved in 2023. The more significant story lies in the company's profitability, which faced considerable pressure throughout the period.
The pre-tax profit saw a substantial reduction, falling by over £68 million to £57.3 million. This downturn is attributed to several factors, including a significant rise in the company's cost base. According to the report, distribution costs and administrative expenses collectively increased by £69 million, which directly impacted the bottom line. As a result, operating profits also declined, falling from £174 million in 2023 to £114 million in 2024.
2024 Financials at a Glance
- Total Turnover: £7.29 billion
- Pre-tax Profit: £57.3 million
- Operating Profit: £114 million
- Increase in Expenses: £69 million
Strategic Acquisitions and Restructuring
The 2024 financial year was marked by significant strategic moves for Sytner Group. In January, the company completed one of its largest-ever acquisitions with the purchase of Rybrook Investments. This deal added 16 franchise dealerships to Sytner's extensive UK network, expanding its portfolio but also contributing to the increased operational costs reported for the year.
Alongside this expansion, the group also undertook a major restructuring of its used car division. The company noted that its used car supermarket business, CarShop, faced a "challenging" market due to a restricted supply of used vehicles. This was a consequence of lower-than-normal new car production in previous years, which limited the number of vehicles entering the second-hand market.
In response, Sytner Group disposed of two CarShop locations and closed another. The eight remaining dealerships were rebranded as Sytner Select. This process, which concluded in the third quarter of 2024, incurred non-recurring costs of £3 million.
Location Closures and Associated Costs
Further impacting the year's financial results was what the company described as a "difficult decision" to close four of its retail locations at the end of 2024. These closures were a significant factor in the reduced profitability, leading to one-off costs totaling £17 million. This figure included an £8 million impairment of assets related to the shuttered sites.
These one-time expenses, combined with the ongoing costs of integrating the Rybrook acquisition and the challenging conditions in the used car market, created a perfect storm that eroded the group's profit margins despite its high turnover.
The Liverpool Connection: From The Cavern to Cars
Sytner Group was founded in Nottingham in 1968 by brothers Frank and Alan Sytner. While Frank Sytner became a celebrated racing driver, winning two British Touring Car Championships with BMW, his older brother Alan had a deep connection to Liverpool's cultural history. Alan Sytner was the original owner of the Cavern Club on Mathew Street, opening it as a jazz club in 1957. He famously booked a young skiffle group called The Quarrymen, who would later evolve into The Beatles. Alan sold the club in 1959, years before The Beatles achieved global fame there, and later went into the car business with his brother.
Market Position and Future Outlook
Despite the profit downturn, Sytner Group remains a dominant force in the UK's luxury automotive retail sector. The company operates a vast network of dealerships representing some of the world's most prestigious car brands.
Brands Represented by Sytner Group:
- Audi
- Bentley
- BMW
- Bugatti
- Ferrari
- Jaguar
- Lamborghini
- Land Rover
- Rolls-Royce
The company's strategy of acquiring Rybrook Investments indicates a long-term focus on growth and market consolidation. While the immediate financial impact has included higher costs, the move strengthens Sytner's position in the premium market. The restructuring of its used car operations into the Sytner Select brand also suggests an adaptation to evolving market dynamics. The coming year will be crucial in determining how these strategic decisions translate into future profitability.