Cinch sales drop below £1bn after ‘rapidly falling’ used car prices
Sales are car retailer Cinch dipped below £1bn after the company was hit by “rapidly falling” used vehicle prices.
For the 12 months to 31 March, 2024, the Hampshire-based firm posted a revenue of £932.5m, down from the £1.01bn it achieved in the prior year.
Newly-filed accounts with Companies House also show that its pre-tax loss decreased from £176.1m to £118.2m.
An average of 7,670 cars were listed for sale on Cinch’s website in the year, down from 8,801.
Cinch said its volumes are “broadly flat” with its third quarter impacted by “rapidly falling” used vehicle prices.
Cinch sales follow Webuyanycar decline
A statement signed off by the board said: “During the year, market and macro-economic conditions in the UK remained uncertain.
“The ongoing war in Ukraine, continuing high energy and fuel prices, persistent high inflation and interest rates have continued to adversely impact consumer confidence.”
Cinch added: “The group will continue to invest in promotional activities to grow brand consideration, seek to provide a ‘faff-free’ customer experience through further development of the Cinch digital platform and supporting technology, continue to enhance Cinch’s offering to the consumer, focus on efficient buying of vehicles to increase unit economics and invest in data to drive insight-led commercial decision making.
“The group will explore opportunities for growth through new marketplaces and strategic investments and acquisitions, where appropriate.”
The results for Cinch come after its owner, Constellation Automotive, slashed its loss almost in half despite suffering a sharp drop in the value of used cars in 2023.
City PM reported in October that the group, whose brands also include Webuyanycar, Marshall Motor Group and BCA, posted a pre-tax loss of £74.4m for the year to 31 March, 2024, down from the loss of £135.3m it fell to in the prior 12 months.
Over the same period, the Hampshire-headquartered group’s revenue fell from £9.68bn to £9.33bn.
Constellation Automotive is backed by TDR Capital, the majority owner of Asda.
In December, City PM also reported that sales at Webuyanycar plunged by almost £1bn in its latest financial year as a sharp fall in the value of used cars hit the motor marketplace.
The company reported a revenue of £2.57bn for the year to 31 March, 2024, down from £3.51bn.
Its pre-tax profit also fell from £85m to £48.3m over the same 12-month period.