Tudor Group Holdings Limited

Introduction The Directors present their strategic report for the financial year ended December 2024. Despite a year marked by sustained inflationary pressure, tightening credit conditions, and continued volatility in the automotive and property sectors, the Group has delivered a resilient performance. Profitability has been maintained through effective cost control, improved operational efficiency, and the continued diversification of the Group's activities. Business review For Kent Auto Panels Limited (KAP) 2024 marked the first year of trading under the Omoda and Jaecoo franchises, a delayed start of July due to regulations allowed us to build the order bank. The transition has begun to yield results, with brand awareness and showroom traffic improving throughout the second half of the year. Furthermore, aftersales performance remained a cornerstone of profitability, supported by increased labour rates and strong retention of manufacturer servicing work. However, parts supply disruption and inflation in wages and utilities have constrained margins. The business continued to focus on workshop productivity, EV servicing capability, and customer retention initiatives to strengthen its long-term position. The Bodyshop also delivered its strongest performance for several years, driven by new contracts and increased work throughout, reinforcing its importance as a consistent contributor. Practical Car and Van Rental Limited (PCVR) continued to have strong fleet utilisation, supported by robust demand for short-term rentals and continued recovery in business travel. Furthermore, the franchise network continued to perform well, with targeted investment in technology and operational support helping franchisees adapt to cost pressures. Further enhancements to the Group's rental software platform (Revolution) were also completed during the year, improving efficiency and user experience, with several exciting development projects scheduled for rollout in 2025. The Tudor - Allianz insurance partnership remains central to mitigating operational and financial risk across the network. Pavilion Batteries maintained steady trade, supported by long-standing customer relationships and growth in the commercial vehicle sector. Focus remained on product innovation, particularly sustainable and recyclable battery solutions, to meet evolving market demands. During the year, new supplier relationships were established, improving both margins and access to the latest battery technologies. Tudor Insurance (Guernsey) continued to perform consistently, managing exposure within agreed parameters and providing valuable group-level risk mitigation. Furthermore, capital and underwriting discipline remain strong. Furneaux Estates Ltd oversaw the group properties ensuring that the property estate is professionally managed, maintained and fit for purpose. Principal risks and uncertainties The group faces a variety of risks across financial, trading, and operational categories Financial risk: 2024 saw sustained high interest rates, placing upward pressure on financing costs. The Group remains vigilant in managing cash flow and continues to seek refinancing opportunities to reduce exposure. Persistent inflation continues to affect labour and energy costs. Active supplier negotiation and internal efficiency initiatives remain key mitigants. Trading risk: The success of Omoda and Jaecoo remains central to KAP's future growth. Continued brand development, training, and customer confidence-building are priorities. PCVR's strength lies in its network. Ongoing communication, digital platform investment, and franchise support are essential to maintaining stability. Operational risk: Recruitment challenges persist in the automotive sector. The Group continues to invest in apprenticeships and internal training to maintain skilled labour pipelines. Despite some market stabilisation, energy costs remain above pre-pandemic levels. Fixed contracts and monitoring are in place to manage volatility. Financial key performance indicators Group turnover is a key performance indicator, with moderate growth in gross profit driven by improved aftersales margins and disciplined cost control. Cash management and debt reduction have been central priorities throughout 2024, supported by property income streams via Furneaux Estates. Future Outlook The Group enters 2025 with a cautious but confident outlook. Key objectives include driving profitability through the maturing Omoda and Jaecoo franchise network, enhancing workshop utilisation and EV capability to meet changing market needs, supporting PCVR's franchise base with improved systems and customer experience initiatives, maximising the value and return from the Group's property assets through Furneaux Estates, continuing to strengthen liquidity and manage debt exposure amid uncertain economic conditions.The Directors remain confident that the Group's diverse portfolio, prudent management, and strategic investments will support sustainable long-term growth.