Sinclair Motor Holdings is looking ahead for a recovery this year as it puts behind a “very testing” 2025 which it described as the toughest year since before the pandemic.
Last year the dealer group saw pre-tax profits decline 37.9% to £2.72m on turnover up 4.4% to £703.5m. New car volumes and profits were down across many its brands as carmakers struggled with the ZEV Mandate.
Sinclair is based in South Wales, representing a broad swathe of brands including Audi, BYD, Cupra, Hyundai, Jaguar, Land Rover, Mercedes-Benz, SEAT, Smart, Skoda, Volkswagen and Volkswagen Vans.
In accounts filed at Companies House director Andy Sinclair said: “Our manufacturer partners are all suffering with increased costs from electric car sales, and the results have often been an increase in prices of all cars across our ranges. This has resulted in lower margins as we try and help our customers afford the purchase of their next vehicle.”
Sinclair also singled out Jaguar Land Rover cyber-attack which savaged production and reduced sales and profitability for the group and hit used car volumes.
Aftersales did not escape the market pressures. “Our aftersales departments have also worked through testing times. The reduction in new and used car volumes, the lower hours sold on electric cars and the ongoing challenges in warranty, have all led to a reduction in many of our service and parts departments across the group.
“Therefore, the numbers of cars we have seen through our workshops has reduced year on year, resulting in again a reduction in turnover and profitability in these key departments.”
While volumes fell, overheads increased because of Government Budget hikes to the National Minimum Wage and increased National Insurance contributions for employers.
Looking ahead Sinclair said it expects to return to strong profitability for the group with lower cost EVs and more new models coming to market.
Rounding up the year and signing off the accounts director Andy Sinclair, said: “”2025 was a very testing year for the industry and our business.
“However, we are very positive that many of the industry issues are behind us, and the outlook for 2026 is strong.
“We have already experienced significant uplifts in turnover and profitability across most of our sites and are confident that our group profitability for 2026 will return to budgeted expectations.”
