Euro Car Parts announces £ 40million drop in profits in 2020 due to pandemic and lower roadworthiness tests – Car Dealer Magazine

Euro Car Parts has announced a £ 40million drop in profits in its full accounts for the year ending December 2020.

The auto parts supplier explained how it was performing at normal levels in the first quarter of 2020 but saw a “significant drop in demand and profitability” in the second quarter, when the pandemic was most severe.

However, he also pointed out changes to the new cars that made them more complex and more reliable as impacting sales.

It achieved a turnover of £ 1.05bn in the year and generated £ 6.1m in profit compared to £ 46m in 2019.

Sales also fell by £ 29.7million, but he added that the acquisition of 27 Andrew Page branches in July 2020 generated £ 25.4million in sales and advancements in e-commerce helped to alleviate some of that.

Euro Car Parts also pointed out that the increasing reliability of the cars has an impact on their business, as the first three-year technical inspection is important for the company but each year the number of breakdowns requiring work is decreasing.

Commenting on this in its list of uncertainties and risks, Euro Car Parts wrote: “Vehicles are becoming more complex and leading to additional system failures.

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“Advances in vehicle design, such as multiplex electrical systems and on-board telematics, potentially give automakers the opportunity to reverse their declining share of the UK aftermarket.

“This risk is recognized by the board of directors and currently protected by EU transitional regulation which has been designed to prevent consumer choice from being reduced and the independent secondary market from being disadvantaged.”

He also revealed it took £ 20.5million in government aid under the coronavirus job retention program and £ 3.8million of rate relief. However, business leaders also did not receive dividends in 2020 for the second year.


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