Subaru UK sees 40% sales surge but profits dip amid supply challenges
Sales at Subaru UK, the importer of Subaru cars in the country, have soared by over 40% during its latest financial year, despite a supply and demand imbalance.
The Solihull-based company has disclosed a turnover of £75.9m for 2023 in its latest accounts filed with Companies House, marking a significant increase from the £48m recorded in the previous 12 months.
However, despite this surge in sales, the firm saw its pre-tax profit drop from £3.9m to £1.3m over the same period, as reported by City AM.
Subaru UK bosses ‘remain positive’
A board-approved statement read: “The directors were satisfied with the company’s progress and performance during the year.”
It continued: “The current year’s result was positive, albeit the company’s volumes were restricted by worldwide demand for passenger cars outstripping supply, particularly impacting the first half of 2023.”
The statement also highlighted that “The company’s working capital saw a move to normalised stock levels and vehicle margins were strengthened as a result of the pound’s strength against Japanese Yen.”
Looking ahead, the directors are upbeat about 2024, noting: “Subaru UK has refined its dedicated internal management structure which is positive for the brand and the relationships with the manufacturer.”
Moreover, the company reported: “Franchising activity and interest from potential franchisees remains positive.”
The statement concluded with an optimistic outlook: “The directors remain positive about the future of the brand and achievement of 2024 budgets.”
“The directors are focused on developing the UK network and ensuring it has a sustainable future.”
“2024 sees investment of margin in dealer incentives and brand marketing. The board is committed to the brand and looks to adapt to new product and future growth.”
Subaru UK, which falls under the umbrella of International Motorsalso known for importing car brands such as Mitsubishi Motors and Isuzuhas reported its latest financial outcomes.
In the corresponding financial period, International Motors achieved a turnover climb to £20m from £10.5m, whilst witnessing its pre-tax profit soar from £34.6m to £43m.
International Motors is ultimately owned by billionaire businessman Lord Robert Edmonton.