Constellation Automotive Group FY2023

Constellation Automotive Group, owners of BCA, WeBuyAnyCar, Marshall and online auto marketplace Cinch has published its financial results for the year to April 2023.

The Group made a pre-tax loss of £140.7 million compared to a pre-tax profit of £34.7 million in the prior year. With income tax factored in the post-tax loss reduced to £103.9 million, still more than £100 million above the prior year’s post-tax loss of £800,000.

This was on revenue of £7 billion ($8.6 billion, down 16% year-on-year (y-o-y) from £8.3 billion. Adjusted EBITDA decreased by 40.1% from £336.3 million to £201.6 million ($249.5 million).

The results cover companies including BCA’s four businesses, BCA Automotive, BCA Logistics, BCA Vehicle Services and BCA Fleet Solutions and WeBuyAnyCar. Cinch’s accounts for the year to March 2023 are not due to be files until the end of December.

In the filing at U.K.’s Companies House, Constellation Automotive Group said the “underperformance was due to “scarcity of vehicle volumes that significantly suppressed activity and profitability.” The company said that the U.K. car parc between 2014 and 2022 shows an “ageing but not shrinking” number caused by 2.5 million “lost” new car transactions between 2020 and 2022.

The group’s two main business areas, that contribute more than 90% of overall group revenue, has contrasting fortunes in the period. Its U.K. vehicle remarketing business was impacted by “significantly reduced auction entry volumes and higher unabsorbed overheads caused by overcapacity in operating at 60%-70% of retail operational capacity”

Its vehicle buying service on the other hand had “excellent results compared against an outstanding prior year.” WeBuyAnyCar contributed positively, acquiring 491,000 cars for auction customers.

The group ended the year with improved liquidity of £271.4 million, compared to £247.1 million at the end of the previous year. This was due to reduced inventory holdings and actions taken following a property review where they offloaded a number of retail-ready sites to reach what Constellation called “ a size more appropriate for near-term production.

The group now employs more than 9,500 people. It was set up in 2020 as a holding company to the BCA Marketplace Limited Group. Its immediate parent company is Constellation Automotive Holdings Ltd and the ultimate controlling party is TDR Capital LLP.

In April, Cinch CEO James Mullins was appointed to Constellation Automotive Group’s board of directors.

 

 

 

 

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