Independent Ford retailer Peoples has reported record pre-tax profits of £8.48m, up 6.2% on the previous year.
While turnover dipped by 4.8% to £275.6m, the business saw a return on sales of 3%.
Its commercial vehicle sales were up by 2%, compared with the UK market average, which saw a decline of 24.2%.
Chairman Brian Gilda said: “Despite the worldwide shortage of semiconductors, which has affected both our vehicle volumes and turnover, our relentless focus on pursuing real business opportunities, alongside stronger margins, have allowed us to achieve record profits.
“During the financial year we established a new seven-person operational board, which is more diverse and is tasked with ensuring we remain agile in this challenging market, and this has been key in delivering our best results in 39 years.
“We are particularly proud of our stand-out performance in commercial vehicle sales which bucked the UK trend - the Transit brand continues to outsell every other commercial vehicle in the UK and European market, and its popularity, coupled with the fact we have a team of exceptional commercial vehicle specialists, are a winning combination.”
Gilda also stated that the continued appetite for hybrid cars is likely to extend to full-electric vehicles (EVs), as charging infrastructure continues to improve. In anticipation of this, the company has invested a six-figure sum installing electric chargers across its dealerships, which should allow it to increase the number of EVs in its fleet in future.
Peoples already has a significant order bank for the all-new Transit Electric, while he described the Mustang MachE as a “joy to sell” – and it is also the car he currently drives.
Peoples cautioned that despite a strong financial year, the current macro environment could make next year more difficult.
“We must be realistic - headwinds are coming and we need to be prepared - the semiconductor shortages are expected to continue into 2023, and in addition to this, we cannot ignore the current economic situation and consumer confidence which will inevitably have an impact on the industry as a whole.
“We therefore anticipate that growth in the coming year will be more modest, but along with the loyalty of our customers, we have a first-class team of directors, management and staff whose tireless commitment will help us to navigate these challenges.”
Despite the headwinds, pre-tax profit for August, September and October were up 61% on the same period last year.
Peoples Group was founded in 1983 and has six dealerships: three in central Scotland - in Edinburgh, Falkirk and Livingston - and three in Liverpool.
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