Hidsons in Northfleet and Rainham doubles pre-tax profits as car dealership ditches Seat and partners SsangYong

A family-owned car dealership negotiated a series of tight bends on its way to nearly doubling its pre-tax profits.

Hidsons, which runs showrooms in Rainham and Northfleet, had a strong performance even though last year was no clear run for the firm.

It was forced to pull out of selling Seat and decided to partner SsangYong after a planned rise in Kia sales stalled.

Chevrolet sales helped Hidsons kick start sales last year before the dealership pulled the brand
Chevrolet sales helped Hidsons kick start sales last year before the dealership pulled the brand

However, the company drove operating profits past £122,000 last year, up from £64,000.

The car retailer was able to boost turnover to more than £41.1 million, up from £34.5 million a year earlier. Pre-tax profits largely mimicked operating profit.

It was also named 44th among the 50 fastest-growing private firms in the county in the MegaGrowth 50 list 2015.

Last year started strongly for the firm, with interest in Chevrolet vehicles “exceeding all expectations both in volume and profitability”.

However a strategic review by bosses halted the sale of Chevrolet products after the first three months of last year, with Kia sales expected to “significantly improve to more than make up for the shortfall”.

Hidsons has dealerships in Northfleet and Rainham
Hidsons has dealerships in Northfleet and Rainham

Yet the move failed to bring results expected, prompting the dealership to partner with another Korean car maker SsangYong from March this year.

The company also had its franchise with Seat UK terminated, although the marque never made a profit for the company.

It has since been given an extension on the franchise by the company.

"We are seeing signs of growth in the economy leading to increased capital spending by businesses and individuals...” - Nigel Hidson, managing director

Managing director Nigel Hidson said: “An examination of aftersales warranty suggested the onerous standards for a poorly performing franchise had been much to blame for this situation.”

The company, which employs about 105 people, switched to Mitsubishi in February this year which “appeared to offer a longer term more profitable option”.

The firm has also put more emphasis on its Citroen business in Northfleet following the demise of Chevrolet in Rainham, which was done “without detriment to the growing Kia business at the site”. However, Vauxhall sales remained disappointing.

Managing director Nigel Hidson said: “There was little or no Great Wall product brought into the UK for most of 2014 which effectively meant sales dried up to nothing.

“The company faces a number of business risks and uncertainties due to difficult trading conditions because the company’s market has seen both business and private individuals reducing their spending on vehicles.

“However, we are seeing signs of growth in the economy leading to increased capital spending by businesses and individuals.”

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