Eastern Holdings was in expansion mode in 2025 taking on three Chery franchises and buying two Audi business last year.
The group saw pre-tax profits falling -15% to £11.3m on turnover down -3.1% to £892.5m.
The reduction in turnover was mainly due to Mini & Honda moving from a wholesale to an agency model.
In April 2025 it also closed its Harley-Davidson and Kawasaki franchises, it said in results released to Motor Trader prior to posting on Companies House.
Its gross profit increased by £2.2m to £108m but the £1.9m reduction in net profit can mainly be attributed to increased National Insurance (NII) national insurance charges together with the increase in minimum wage rates.
During the year it opened three new Chery franchises, its first venture with a Chinese Brand. Post year-end it opened a fourth location.
It said recruiting for these dealerships and general start-up costs had impacted its financial performance in Q4.
In November last year it acquired Audi Edinburgh and Audi Stirling from Lookers for £8.1m in what it described as a “challenging acquisition” in a period of reduced activity and the switch of DMS from Keyloop to Pinewood Pinnacle.
“New car availability has increased to pre-pandemic levels, and this introduces a degree of additional risk, particularly in a higher interest environment,” it added.
Eastern also reflected on the shortage of technicians and the associated increase in costs.
