Did the shift to agency agreements cause Listers Group's profit drop? Explore the 2025‑26 results and what it means for UK car dealers.

2025‑26 financial headline for Listers Group

Listers Group reported pre‑tax profits of £12.7 million for the year to 31 March 2026, a decline of almost 15% compared with the previous year. The drop follows a strategic transition from traditional franchise contracts to agency‑based agreements across its dealer network.

Why did Listers Group profits fall 15% after moving to agency agreements?

Turnover slipped as the agency model took hold

The group’s total turnover fell to £1.31 billion, down from £1.344 billion a year earlier. Listers identified the move to agency agreements as the ‘most significant factor’ behind the reduction in turnover.

Profit figures in detail

Profit before tax decreased from £14.9 million to £12.7 million, while profit for the year fell 17.2%, moving from £10.8 million to £8.9 million.

Vehicle sales volumes also declined

Overall vehicle sales were 1.9% lower than the previous year, a figure that includes both franchise and agency sales. New‑car volumes dropped by 1.5%, and used‑car sales were down 2.7%.

Gross profit stayed steady despite lower turnover

Even with the turnover decline, gross profit barely changed, edging up from £197.1 million to £197.4 million. The gross margin improved from 14.7% to 15.1%.

What drove the margin improvement?

Listers attributed the better margin to a changing business mix. The shift to agency agreements, a reduction in new‑car sales, and a 3% rise in after‑sales turnover all contributed. Higher margins on after‑sales work and agency sales further bolstered the overall gross margin.

Key brands sustaining profitability

Land Rover, Lexus and Volkswagen emerged as the group’s biggest profit contributors during the year.

New brand representation and future prospects

In July 2025 the business began representing MG in the Northampton and Solihull regions. The group also indicated that it is ‘assessing opportunities’ with Chinese automotive manufacturers, signalling a potential expansion of its brand portfolio.

Dividends and shareholder returns

Dividend payments fell sharply, with £15 million distributed to shareholders – less than half of the £36 million paid out in the previous financial year.

Director outlook

The directors provided limited commentary on the year’s performance and offered no forward‑looking statements. The report did note that the directors expect continued profitability from the existing trading outlets.

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The original post appeared on Car Dealer Magazine.

Why did Listers Group profits fall 15% after moving to agency agreements?