Arnold Clark accelerated its investment in new vehicle franchises during 2025, growing new car sales by more than 11% as revenue climbed to £5.56 billion despite higher operating costs reducing profits.
The UK’s largest independently owned dealer group reported pre-tax profit of £113 million for the year ended December 31, down 6.6% from £121m in 2024, while revenue increased 7.9% to over the £5.5bn mark.
The growth in revenues further solidifies Arnold Clark’s position in the top three of the AM100.
The performance came as Arnold Clark continued expanding its manufacturer portfolio with the addition of Chery, Corvette, Geely, Leapmotor and Maserati, increasing the number of multi-brand dealerships by 18% during the year.
More than 6,100 new vehicles were delivered by the newly introduced brands.
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New car registrations increased 11.2% to 71,388 units, supported by stronger manufacturer supply, growing demand for new entrants to the market and the expansion of the group’s franchise portfolio.
Used car volumes declined 2% to 187,920 vehicles as showroom capacity was reallocated to support the new franchise additions.
Arnold Clark said it maintained its focus on retailing higher quality used vehicles, increasing average selling prices while preserving margins.
Although gross profit increased by £31m, operating expenses rose by £38m, driven primarily by higher employment costs and inflationary pressures. This resulted in pre-tax profits falling to £113m.
Dealership and EV strategy expansion
The group continued investing across the business during the year.
It acquired five dealership properties in Aberdeen, Cardiff, Coventry, Edinburgh and Norwich, while a further £10m was invested in the Arnold Clark Charge public EV charging network, taking total investment to £19m. The network now operates from 59 locations.
Arnold Clark also strengthened its financial position, increasing net funds to £450m from £359m and shareholders’ funds to £1.63bn, providing significant capacity for future investment.
Looking ahead, group chief executive Russell Borrie said Arnold Clark had entered 2026 with positive momentum after its Real Sale campaign delivered more than 46,000 vehicle sales during the first two months of the year.
He said the group expected to benefit from the addition of new manufacturer partners while continuing to invest in digital technology to make the buying journey more seamless.
Borrie said: “Our aim is to enable customers to manage their entire journey through their mobile device – buying a car, valuing their current car, making a payment, and choosing a time to collect their new car.
“We need to continue to provide exceptional value for money and the highest levels of customer service.”