Hendy Group says a transformation plan is beginning to improve sales and profitability after reporting losses during a difficult 2024 and 2025.
For the year to December 29, 2024, the dealer group posted a pre-tax loss of £18.1 million, compared with a £7.2m profit in 2023, as revenue fell by 5% to £1.1 billion. Gross margins were under pressure due to wider economic conditions.
New car profitability was hit by the zero-emission vehicle mandate, with some OEM partners seeing declines in market share and margin.
The cost base also rose due to higher than expected inflation and external pressures.
Paul Hendy, chief executive, said the results reflected a challenging period for both the business and the wider sector.
He said: “These figures reflect what has been a very challenging trading period for the company across 2024 and 2025 and for the motor retail sector as a whole.”
He added that performance is now improving, supported by internal changes and staff efforts.
Ensure you always get AM insight. Make us a preferred source of news on Google.
Midway through a longer-term rest
Hendy said: “Now in 2026 we’re seeing an improvement in performance, thanks to the effort and commitment from our colleagues and a transformation programme that is delivering change in all parts of the organisation.”
The programme has included a full organisational restructure aimed at increasing accountability, alongside new board appointments and a refreshed general management team.
Hendy has also introduced a regional operating model to sharpen retail execution, supported by new procurement systems designed to reduce costs and improve efficiency.
The group has continued to expand its brand portfolio, adding Geely, BYD, Omoda, Jaecoo and Chery over the past year. It now represents 22 marques across 44 sales and aftersales sites along the south coast.
Investment has also been made in a Sales Excellence Programme covering more than 400 customer-facing staff, which the group says is already improving sales processes and capability.
Hendy said the business is midway through a longer-term reset: “We have a three-year plan to re-engineer the business to be more agile, efficient and customer focused.”
The leadership structure has been reshaped to support the strategy.
Martin Reay has joined as chief financial officer and Daksh Gupta as non-executive chairman, while general managers now report into three regional operations directors.
Further senior hires include Paul Smith as marketing director, tasked with overhauling brand, digital and CRM activity; Mandeep Dhatt as people director, focusing on recruitment and development; Simon McLaughlin as regional operations director for the East; and Darren Kirby as group IT director, responsible for systems, cybersecurity and data capability.
Hendy said the operational changes leave the group better positioned to recover.
He added: “In 2024 and 2025 the sector faced significant headwinds, but the operational changes we have made have ensured we are better equipped to return to profitability.”