JCT600 maintained pre-tax profit at £20.1 million in 2025 despite higher employment costs, weaker consumer confidence and ongoing pressure on new vehicle margins.
The Bradford-based dealer group reported a return on sales (ROS) of 1.52%, up marginally from 1.51% in 2024, while profit before tax was broadly unchanged at £20.1m. Operating profit before amortisation declined by 5.3% to £27.4m.
Turnover declined slightly to £1.33 billion from £1.34bn the previous year.
Profit resilience despite challenging market
In its annual report posted to Companies House, JCT600 said it had faced a difficult trading environment, with higher National Insurance contributions and National Minimum Wage increases adding £3.2m of costs to the business.
The company said uncertainty surrounding potential tax rises ahead of last year’s Autumn Budget also weighed on consumer and business confidence.
Despite these challenges, the dealer group said it had maintained profitability through a combination of cost control and strong performances in key areas of the business.
JCT600 reduced expenses by 0.64% during the year through a group-wide cost reduction programme focused on all areas of the business.
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Used cars and aftersales support performance
The group highlighted used vehicles and aftersales as key contributors to its 2025 results.
Used vehicle turnover increased by 2.1%, while volumes rose 2.8%, outperforming the wider UK used car market growth rate of 2.15%.
JCT600 said a focus on technology and agile pricing helped increase used vehicle gross profit margins by 9.6%.
Service turnover increased by 5.3%, with the group reporting improved margins despite ongoing pressure on technician wages.
JCT600 said continued investment in technology was delivering efficiency gains across the aftersales operation.
New car market shifts continue
The group reported a 2.08% decline in new vehicle volumes during the year.
However, it noted this compared favourably with a 2.64% decline across the brands it represents.
JCT600 also highlighted the growing influence of Chinese manufacturers in the UK market, noting that new entrants accounted for 109,000 vehicles and more than 10% of overall market growth during 2025.
JCT600 was one of the first to open with Changan at the end of 2025 and has just opened its first AION dealership in Leeds.
The company said discounting to meet battery electric vehicle sales targets continued to place pressure on margins, contributing to a small reduction in gross profit margin from 13.0% to 12.9%.
Expansion plans after strong start to 2026
JCT600 said net debt reduced by £8.3m during the year despite investing £12.3m in freehold property purchases and refurbishment projects.
The group described its gearing position as “very healthy” at 1.35% and said it was well positioned for its next phase of strategic expansion.
Looking ahead, the company said trading in the opening months of 2026 had “exceeded expectations”.