Why did Barretts of Canterbury post profit in 2025 despite a £29 m agency‑sales hit?
Barretts of Canterbury recorded a £0.6m pre‑tax profit in 2025 even after agency‑model cuts and a JLR cyber‑attack reduced new‑car turnover by £29m.
Profit turnaround after a tough year
Dealer group Barretts of Canterbury announced a pre‑tax profit of £0.6 million for the 12 months ended December 2025. This marks a complete reversal from the £1.38 million loss recorded in 2024.
Key financial highlights
Overall turnover fell to £263.44 million, down from £271.92 million the previous year. Despite the drop, adjusted EBITDA more than doubled, rising from £1.87 million to £3.12 million.
Net cash resources weakened, slipping from £1.89 million to just £160,000 after a £1.7 million cash outflow related to financing and capital expenditure.
Impact of the agency sales model
Mini and Honda moved to an agency‑sales structure during 2025. Barretts reported that this shift removed roughly £29 million of new‑car revenue, directly contributing to the lower turnover figure.
New‑car unit sales reflected the change, dropping from 2,520 units to 2,140 – a decline of about 15%.
External pressures: JLR cyber incident and market dynamics
A cyber‑attack on Jaguar Land Rover’s computer systems in September 2025 disrupted production and distribution for several weeks. Barretts’ directors said the incident had an “adverse impact on revenue and profitability in September and throughout Q4”.
The new‑vehicle market remained highly competitive, with profitability further squeezed by increased vehicle supply levels and the ongoing Zero‑Emission Vehicle (ZEV) mandate.
Used‑vehicle operation shows resilience
In contrast, the used‑car side of the business grew 16.2%, increasing from 2,700 units to 3,130 units. Directors described the used‑vehicle market as “more stable and predictable” compared with 2024.
Operational adjustments and staffing
Barretts closed its body‑shop facility after reviewing its operational requirements. Employee numbers fell from 465 to 442, yet staffing costs rose slightly to £19.62 million. Directors’ remuneration increased to £305,000.
Strategic expansion post‑year‑end
Since the reporting period, Barretts has expanded its dealer network by acquiring Broad Oak’s Kia and Nissan sites in Canterbury, signalling confidence in future growth despite the recent challenges.
Director commentary
Paul Barrett, director of Barretts of Canterbury, summed up the year: “Barretts of Canterbury Limited achieved a profit on ordinary activities before taxation of £0.6 million. New‑car registrations increased by 3.5% nationally during the year, but registrations across our manufacturer portfolio declined by 3.9%. Turnover from new‑vehicle operations decreased by £29 million, primarily reflecting the introduction of the agency model by Mini and Honda. The used‑vehicle operation performed strongly against a backdrop of a more stable and predictable market.”
He added: “A cyber incident experienced by a key OEM partner in September 2025 disrupted production and distribution activities for several weeks and affected the availability of vehicles and parts globally. The resulting reduction in vehicle deliveries and after‑sales activity had an adverse impact on revenue and profitability in September and throughout Q4.”
Where to find more information
Barretts’ full accounts are available via Companies House. For a broader view of profitability across the sector, see Car Dealer Magazine’s Top 100 list of the most profitable dealers.