Trade Centre Group returned to profit in 2025 with record £283.4m turnover and £6.2m pre‑tax profit – what does this mean for the UK used‑car market?

Record Turnover and Return to Profit in 2025

Trade Centre Group, the Neath‑based retailer operating under The Trade Centre UK brand, announced a strong financial recovery for the year to 30 November 2025. The company posted a pre‑tax profit of £6.2 million, reversing a loss of £5.4 million recorded in the previous year.

Turnover reached a new high of £283.4 million, up from £275.3 million in 2024. Adjusted EBITDA more than doubled, climbing from £4.3 million to £9.2 million as margins improved and operational efficiencies took effect.

Key Financial Highlights

Several core metrics underpinned the turnaround:

Gross profit grew to £29.9 million from £25.7 million.
Gross margin increased from **9.3 %** to **10.6 %**.
Vehicle sales revenue rose to £256.7 million, compared with £247.1 million the year before.
Vehicle volume rose to **34,225 units**, up from 33,538 in 2024.

Growth in Vehicle Volumes and Gross Margin

The modest rise in vehicle volume contributed to the higher sales revenue and helped lift the gross margin to its best level since the group began reporting. The improvement reflects a more "stable" used‑car market in 2025, according to the company's strategic report.

Strategic Initiatives Driving Improvement

Director Gavin Morgans highlighted the impact of a multi‑year transformation plan introduced in earlier years. The plan focused on operational efficiency, pricing discipline and tighter inventory management. It also eliminated exceptional costs that had burdened the 2024 accounts – notably a £6.2 million charge linked to the closure of the small‑format Birmingham South store and related restructuring.

With no exceptional costs recorded in 2025, the group could showcase the underlying strength of its operating model.

Dividend and Workforce Changes

Despite stronger profitability, the average headcount fell from **675** to **638** employees during the year, reflecting the continued streamlining of operations.

The board declared an interim dividend of **£53.43 per share**, up from £40.00 in 2024, totalling **£2.7 million** – an increase from the £2.0 million paid the previous year.

What the 2025 Results Suggest for the Wider Market

Gavin Morgans noted that, while broader economic conditions remain uncertain and consumer disposable income is under pressure, the used‑car market displayed greater stability than in 2024. The turnaround at Trade Centre Group may therefore be seen as an early indicator that UK used‑car retailers can achieve profitability even in a challenging macro‑environment, provided they focus on efficiency and disciplined pricing.

Further Engagement

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Can Trade Centre Group’s 2025 Turnaround Signal a More Stable Used‑Car Market?