Auto Retail Agenda: 27 March 2023
25 March 2023
- PETER WADDELL IN 2021 LOSS DUE TO CARZAM
- LOOKERS TO TAKE OVER WATERHOUSE
- NFDA’S LOUISE WALLIS LEAVES
- WAYLANDS NAMES OFFICIAL EV CHARGING PARTNER
- JLR ENCOURAGES US RETAILERS TO GIVE UP ON JAGUAR
- CARVANA ATTEMPTS $9bn DEBT RESTRUCTURE
- STOCKWATCH: Inchcape tumbles 14.6% despite strong 2022 growth
- COMING UP: Cazoo full year
- BRITAIN ‘ON ROAD TO HIGHER TAX’
- WHY DELISTING IS ‘A BREATH OF FRESH AIR’
Peter Waddell in 2021 loss due to Carzam
Peter Waddell Holdco Ltd lost £985k before tax in the year ended December 2021, compared to a £4.8m profit in 2020. The loss is attributed to Carzam, of which Waddell held a 30% stake. In 2021, Caram lost £15.4m; Waddell’s share meant a £4.2m loss. It went into administration in June 2022.
The Big Motoring World group’s 2021 turnover grew from £308m to £374m. Before accounting for the Carzam hit, figures show group operating profit fell from £6m to £3.4m.
Lookers to take over Waterhouse
Waterhouse Volvo Essex is to be taken over by Lookers next month, Auto Retail Network has learnt. The Chelmsford retailer is owned by Richard Butler and opened in 1984. Waterhouse also has a Mercedes-Benz facility in Braintree; it is understood the takeover involves this site too.
NFDA’s Louise Wallis leaves
NFDA head of business management Louise Wallis has left the organisation after 27 years. Wallis was also the head of business for the National Association of Motor Auctions. The NFDA is currently looking to recruit a new head of business management.
Waylands names official EV charging partner
Ohme is the new official charging partner for Waylands Group. The Volvo, Kia, MG and Polestar retailer will recommend Ohme chargers for all new and used EV customers, and its 10 retailers will instal an Ohme Home Pro charger in showrooms. EVs and PHEVs currently account for almost 3 in 10 Wayland new car sales, revealed MD John O’Hanlon.
WORLD NEWS
JLR encourages US retailers to give up on Jaguar
JLR is giving some US retailers extra Range Rover and Defender allocation if they give up their Jaguar franchises. The OEM wants Jaguar to become an ultraluxury brand competing with Aston Martin and Bentley, both of which have fewer than 50 US stores. JLR currently has 395 US stores, mostly dual-brand.
There are reports JLR wants to reduce its UK Jaguar retailer count from 80 to 20. Rawdon Glover has been appointed brand director for Jaguar and will oversee the transition.
Carvana attempts $9bn debt restructure
Carvana is attempting to reduce the face value of its outstanding $5.7bn (£4.7bn) of unsecured bond debt by $1.3bn, to cuts its interest bill by £100m. If fully subscribed, the unsecured debt would be replaced by £1bn of secured bonds (they would have second priority claim behind Ally Financial). Carvana has a total $9bn (£7.3bn) debt load.
STOCKWATCH
Closing prices on 24 March 2023 and weekly change
Inchcape tumbles 14.6% after analyst warning despite strong 2022 profit growth. It will pay a dividend of 21.3p on 19 June, if approved at its AGM on 18 May.
Auto Trader Group 594.0p (+7.0p / +1.1%)
Caffyns 500.0p (n/c)
Halfords 172.4p (-1.1p / -0.6%)
Inchcape 730.0p (-115.5p / -14.6%)
Lookers 79.8p (-1.1p / -6.9%)
Motorpoint 135.0p (+3.0p / +2.2%)
Pendragon 16.35p (-0.3p / -1.8%)
Vertu 62.2p (+1.7p / +2.7%)
COMING UP
Tuesday, Nationwide house price index
Wednesday, BRC shop price index
Wednesday, consumer credit
Thursday, Cazoo full year 2022
Friday, GDP
May 3, Radius Law annual conference: sign up now
MONEY MATTERS
Britain ‘on road to higher tax’
“There is every reason to look to the new tax year with trepidation,” says The Sunday Times. Corporation tax rises to 25%, income tax allowances and thresholds are frozen (a £29bn a year ‘stealth tax’), and the average tax burden is the highest since 1948.
Previously, “the tax burden tended to self-correct when it went up too much, implying there was a limit to how high it could rise.” Will anything intervene this time, it asks – pointing to Liz Truss’ attempt to reverse the rise in tax ending in tears.
Why delisting is ‘a breath of fresh air’
Industrial software group Aveva says delisting from the LSE has been a “breath of fresh air,” said EVP Andrew McCloskey. “It was really important our investors understood what we did, otherwise the stock price didn’t grow… but now… we have one stakeholder versus all those investors.”
He said City analysts were “very, very smart… the challenge is you’d better make sure you’re highly accurate with your quarter-to-quarter forecasts. If you have a small deviation, there’s a big explanation that you have to do or your stock price goes down.”
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