Car retailer Cinch's sales drop below £1bn as used vehicle prices fall

Car retailer Cinch has reported a dip in sales below £1bn, following a hit from "rapidly falling" used vehicle prices. The Hampshire-based firm posted a revenue of £932.5m for the 12 months to 31 March, 2024, down from the £1.01bn it achieved in the previous year.

According to newly-filed accounts with Companies House, 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 during the year, down from 8,801.

The company stated that its volumes are "broadly flat", with its third quarter impacted by "rapidly falling" used vehicle prices.

A statement signed off by the board said: "During the year, market and macro-economic conditions in the UK remained uncertain."

It added: "The ongoing war in Ukraine, continuing high energy and fuel prices, persistent high inflation and interest rates have continued to adversely impact consumer confidence," as reported by City AM.

Cinch also revealed plans to continue investing in promotional activities to grow brand consideration, enhance its offering to consumers, focus on efficient buying of vehicles to increase unit economics, and invest in data to drive insight-led commercial decision making. The group will also explore opportunities for growth through new marketplaces and strategic investments and acquisitions, where appropriate.

Cinch's results follow its parent company, Constellation Automotive, nearly halving its loss despite a significant drop in used car values in 2023. City AM reported in October that the group, which also owns brands such as Webuyanycar, Marshall Motor Group and BCA, recorded a pre-tax loss of £74.4m for the year ending 31 March, 2024, a decrease from the previous year's loss of £135.3m.

During this time, the Hampshire-based group saw its revenue fall from £9.68bn to £9.33bn. Constellation Automotive is supported by TDR Capital, the majority owner of Asda.

In December, City AM also reported that sales at Webuyanycar dropped by almost £1bn in its latest financial year due to a sharp decline in used car values. The company posted a revenue of £2.57bn for the year ending 31 March, 2024, down from £3.51bn.

Its pre-tax profit also decreased from £85m to £48.3m over the same 12-month period.