Oak Group Holdings Reports Notable Profit Growth Amid Industry Challenges

In a display of robust financial performance, Oak Group Holdings, based in Newton-Le-Willows, has reported a significant increase in pre-tax profits, rising to £10.1 million in a year marked by economic fluctuations. The tyre distributor, which supports nearly 400 employees, specialises in a comprehensive range of automotive products including weights, valves, inner tubes, tyre fitting tools, and repair materials.

For the financial year ending 31 July 2023, Oak Group, which manages Oak Tyres UK, Davanti Tyres, and Davanti World, witnessed its turnover escalate from £163.1 million to £181.1 million. This financial uplift comes despite the drop in unit prices and a reduction in shipping costs, highlighting the company’s resilient market strategy.

The strategic focus over the past year has centred on cultivating house brand sales, which has substantially contributed to the company's profitability during times of pronounced price inflation. This approach not only supported revenue growth but also significantly bolstered the company’s cash reserves, which saw a remarkable increase from £1.1 million to £11.4 million.

EBITDA for the year stood at £13.5 million, further underlining the financial health of the business. Peter Cross, the commercial director of Oak Tyres, shared insights with Insider, noting the crucial role of the company’s workforce and customer base in achieving these results. “Our team’s dedication and our focus on maintaining exceptional customer service have been pivotal,” he commented.

In addition to maintaining high service standards, Oak Group has continued to innovate, recently expanding its operational capacity with a new distribution facility in Haydock. This expansion is aimed at enhancing service delivery and sustaining growth.

Looking ahead, the company is poised to further develop the Davanti brand, enhance its research and development efforts, and explore new market opportunities. “In a competitive landscape, continuous improvement and innovation are essential. We are actively enhancing various aspects of our operations to ensure ongoing growth,” Cross added.

This strategic foresight is setting Oak Group on a path to not only lead in its sector but also to set benchmarks for the industry at large.

Read full article