Bowker’s pre-tax profit fell 29.8% in 2025 as weaker vehicle margins and higher finance costs offset sales growth, while the dealer group expanded into Chinese brands Chery and Changan.
The business reported pre-tax profit of £1.9 million for the year ended December 31, down from £2.71m in 2024.
Operating profit also slipped 1.9% to £5.89m, with the group’s operating margin narrowing from 1.86% to 1.54%.
The AM100 dealer group said profitability came under pressure from weaker vehicle margins, higher employment costs, rising property expenses and increased finance costs following the acquisition of Porsche Centre Bolton, despite turnover increasing 18.3% to £381.4m.
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Chinese brands join portfolio
Bowker has used the closure of its BMW Motorrad business to introduce Chinese brands Chery and Changan to its franchise portfolio.
The former Preston motorcycle dealership closed in November 2025 following a strategic review and has since reopened as a car showroom representing Chery, Changan and Bowker Select.
The move comes as a growing number of established UK dealer groups add Chinese manufacturers to their franchise portfolios.
It follows Bowker’s wider leadership restructure across its BMW and MINI operations earlier this year as the dealer group prepares for its next phase of growth.
Margin pressure and ZEV costs
The group said the challenging trading conditions experienced during 2024 continued throughout 2025 as subdued consumer confidence and elevated interest rates affected demand.
Higher employer National Insurance contributions, National Minimum Wage increases, business rates and utility costs also weighed on profitability.
Finance costs increased 26.1% to £4.15m following the Porsche Centre Bolton acquisition, while gross margin reduced from 11.26% to 10.54%.
Bowker also highlighted ongoing pressure from the ZEV mandate, saying manufacturers continued to rely heavily on discounted fleet registrations to achieve compliance targets.
Most EV sales remained concentrated in the corporate market and were completed at higher discounts than equivalent petrol and diesel vehicles, the group said.
Mini transition and used car investment
Bowker said Mini’s move to the agency sales model initially disrupted trading after its introduction in March 2025, although performance improved during the second half of the year.
The group expects the model to provide greater certainty around transaction profitability, with customer service becoming a more important differentiator between dealerships.
Used vehicle volumes increased during the year, supported by investment in a new vehicle preparation centre and improvements to the group’s stock procurement operation.
Bowker also invested £14.14m in tangible fixed assets during 2025, compared with £6.35m in 2024, reflecting continued investment in its dealership operations.
Looking ahead, Bowker said higher employment costs would continue to create challenges during 2026.
However, it expects lower borrowing costs, the arrival of BMW’s Neue Klasse range and the addition of Chery and Changan franchises to support future growth.
In a statement within the group’s latest accounts, the directors said: “The board remains cautiously optimistic about the future prospects of the group despite the continuing economic uncertainty and inflationary pressures.
“While market conditions remain challenging, the group has a strong balance sheet, a loyal customer base and represents premium automotive brands which are well positioned for long-term success.”