Big Motoring World posts £12.5m loss and £4m legal bill

Big Motoring World reported a pre‑tax loss of £12.48 million for the year to December 2025, while legal expenses climbed to £4.07 million in its dispute with former founder Peter Waddell. The group also saw revenue top £1 billion, but failed a bank covenant, raising concerns for dealers.

Key takeaways

• Pre‑tax loss reached £12.48 million for the year to December 2025.
• Legal costs rose to £4.07 million in the Waddell dispute.
• Revenue exceeded £1 billion, up 20 % on the previous year.
• The firm failed a 2025 bank covenant but kept its loan facility.

Legal battle and rising costs

The High Court ruled that Big Motoring World was entitled to dismiss Peter Waddell without notice after finding his conduct amounted to gross misconduct. The ruling also highlighted that the process used to remove his directorships and limit his shareholder rights was invalid and unfairly prejudicial.

Legal fees linked to the dispute totalled £4.07 million, up from £3.78 million the previous year. A further hearing to decide on full costs is scheduled for the High Court in November 2026.

Financial performance and revenue growth

Revenue climbed to £1.1 billion, up from £859.1 million, as retail vehicle sales rose 20.1 % to 61,599 units. Growth was driven by the acquisition of three former CarShop sites in Norwich, Sheffield and Camberley.

Employee numbers increased to 1,511 and employee costs rose to £57.22 million, reflecting the larger workforce needed to support the higher sales volume.

Governance, staff and remuneration

Directors’ remuneration grew to £847,114, with the highest‑paid executive receiving £700 000. No dividends were paid to shareholders for the year.

CEO Laurence Vaughan said the market remained volatile in 2025, but the company’s diverse supply channels and EV proposition would be developed further in 2026.

Bank covenant breach and financing

The accounts show the group failed a financial covenant test at the end of 2025, breaching a condition attached to its bank loan. The lender opted to keep the facility on the original terms.

Big Motoring World continues making scheduled monthly repayments, with the remaining balance due in November 2026. Directors are reviewing funding options and monitoring cash liquidity.

What this means for dealers

The sizeable loss and ongoing legal costs signal financial pressure on the used‑car supermarket, which could affect its ability to offer credit or promotional terms to dealer partners. Monitoring the group's cash flow and funding arrangements is advisable.

While revenue growth shows the business is still expanding, the covenant breach and litigation introduce uncertainty. Dealers may wish to assess the stability of supply agreements with Big Motoring World and consider alternative sources if risk levels rise.

Frequently asked questions

What caused Big Motoring World's pre‑tax loss in 2025?

The loss stemmed from a combination of higher employee costs, increased director remuneration, and a £4.07 million legal bill tied to the dispute with former founder Peter Waddell, despite a revenue increase that pushed turnover above £1 billion.

How might the legal dispute with Peter Waddell affect the group's operations?

The dispute has generated significant legal expenses and a court ruling that found some removal procedures invalid. Ongoing litigation may divert management attention and could lead to further cost allocations, influencing profitability and potentially delaying strategic initiatives.

What are the risks of the failed bank covenant for dealer partners?

A covenant breach can prompt lenders to demand repayment or renegotiate loan terms. Although the current facility remains unchanged, any future tightening could impact the group's financing capacity, which may affect its ability to purchase stock or extend credit to dealer customers.