US based dealer group, Group 1 Automotive, Inc. who own the Spire, Chandlers, Barrons and Elms dealerships in the UK have reported third quarter 2016 net income of $35.4 million, diluted earnings per common share of $1.65, adjusted net income of $42.0 million and adjusted diluted earnings per common share of $1.96.

Talking about the performance, Earl J. Hesterberg, Group 1’s president and chief executive officer said, “Our third quarter earnings were negatively impacted by ongoing sales weakness in our energy-dependent markets, especially Texas and Oklahoma, and some slight market weakness in the U.K. due to uncertainty associated with Brexit. While our U.K. sales decreased in July and August, we did see recovery in September, but not enough to offset the weakness that occurred immediately following the vote. Additionally, the weakening pound, versus the dollar, lowered this quarter’s earnings per share by about four cents. Within the U.S. results, we were encouraged by another quarter of improving new vehicle margins and the progress we have made in reducing new vehicle inventory during the quarter, with days’ supply improving nine days from second-quarter levels to 74 days’ supply at quarter end.”

The Group 1 UK operations accounted for 15.4 percent of total revenues and 11.7 percent of total gross profit. Total U.K. revenues increased 33.2 percent (56.7 percent) to $436.0 million, and gross profit increased 31.0 percent (54.2 percent) to $47.5 million. Revenue growth was primarily driven by the acquisition of the Spire dealer group in February of this year. On a constant currency basis, Same Store total revenue increased 5.5 percent, driven by a 6.1 percent increase in new vehicle revenues, 7.9 percent increase in parts and service revenues, and a 15.0 percent increase in F&I gross profit PRU.