Hedin Mobility continued its expansion in the first half delivering reduced net profits of MSEK 552 (£39.7m) (H1 2022: MSEK 1,023) on turnover up 70% to MSEK 37,704 (22,190).
The Swedish company has been expanding in the UK. The acquisition of four dealerships in South London from Mercedes-Benz Retail Group UK was completed in April. The deal comprised dealerships in Brooklands, Dartford, Croydon and West Bromley
In July it bought Stephen James Alliance. The deal takes in the group’s BMW and MINI business, including new and used car sales and aftermarket operations.
Stephen James Group employs 400 people and sells 6,000 new and used cars annually from its London dealerships. It represents BMW and Mini in Enfield, Ruxley and Woolwich and has BMW solus dealerships in Bromley and Blackheath.
The group is rated 72 in the Motor Trader Top 200 Dealer Groups with annual turnover of £218.7m in the year to December 2021, generating pre-tax profits of £7.1m
Hedin continues to have a major stake in Pendragon Group. It did look at buying the group but walked away citing economic conditions.
CEO Anders Hedin said: “The development during the second quarter was in line with the first three months of the year and it is pleasing to note that we continue to grow organically.
“Adjusted for acquisitions and exchange rate changes, net sales increased by 11% during the quarter and by 13% the first six months.
“However, as in the first quarter, the result is weighed down by lower sales volumes, increased operational and financial expenses, as well as currency effects and establishment costs.
Throughout the group we have a strong focus on increasing volumes and optimising profitability.”