Auto Retail Agenda: 16 October 2023
15 October 2023
- FRED MAGUIRE, INDUSTRY GIANT AND CHAIRMAN OF ARN
- AUTONATION DECISION ON PENDRAGON ‘EXPECTED THIS WEEK’
- 2023 NEW ENTRANTS REPORT GOES LIVE
- HENDY GROUP IN £20M PROFIT
- KIA TO OPEN DERBY TRAINING ACADEMY
- ONLINE EXPERIENCE WHITEPAPER
- NEW BRAVOAUTO AUSTRALASIA BOSS
- US RETAILER PAYS $9M TO SETTLE DOJ CASE
- STOCKWATCH
- COMING UP: UK unemployment and retail sales
- HIGH INTEREST RATES TRIGGER UNEXPECTED TAX BILLS
- CHANCELLOR ‘PREPARING FOR THE WORST’
Fred Maguire, industry giant and chairman of ARN
It’s with deep sadness that we report the passing of Fred Maguire, one of the giants of auto retailing and, until very recently, chairman of Auto Retail Network. Fred, who was 81, died in his native Northern Ireland on Friday.
Fred made his name in the industry as chief executive of Charles Hurst and moved to a similar role in Lookers in 1997 after the plc bought Hursts a year earlier. He served Lookers for 20 years building the group into a national supergroup, first as CEO and then as chairman before retiring in 2006.
Fred invested in Auto Retail Network from outset and was chairman at its launch, guiding the business through its formative years and to its current maturity. He stepped down recently due to ill health but retained a lively interest.
Rupert Saunders, co-founder of ARN, said: “We have lost a close friend and amazing leader and mentor. Many in this industry will have benefited from Fred’s wisdom and encouragement and I am sure they join us in mourning his passing.”
Fred Maguire was a fiercely competitive businessman, famously fighting off a takeover challenge from rival Pendragon in 2005/6. But he was also a family man with a strong personal faith and deep belief in empowering his colleagues and others.
Our thoughts are with his wife, Rosemary, his children and his extended family. A full appreciation will appear in the next issue of Auto Retail Bulletin.
Those wishing to leave a sympathy notice can do so here: https://www.funeraltimes.com/frederick-sydney-fredmaguire701512875
Details of the funeral can also be found using the link.
AutoNation decision on Pendragon ‘expected this week’
AutoNation boss Mike Manley is expected to decide this week whether to ‘gatecrash’ the £500m takeover of Pendragon. Lithia Motors’ cash and shares deal is worth 35.4p and AutoNation could opt for a 38p a share offer. Manley is reportedly eager to buy a UK retailer amid fears it could lose ground to US rivals Lithia and Penske.
2023 New Entrants Report goes live
The 2023 New Entrants Report is now available to buy following a webinar launch event last week. BYD’s Mark Blundell, Auto Trader’s Ian Plummer and Urban Science’s Chee-Kiang Lim discussed what new entrant brands can offer UK retailers, how and when they’re likely to come to the UK, and how their arrival may change the market. Watch it on catch-up here: https://tinyurl.com/2p823abe
Accounts filed last week showed pioneering new entrant MG Motor UK revenue rose 122% to just over £1bn. Profit before tax surged from £4.3m to £54m.
* Buy the New Entrants Report here: https://tinyurl.com/bdhmat49
Hendy Group in £20m profit
Hendy Group posted profit before tax of £20.3m in the year ended December 2022, up from £17.4m in the previous year. Turnover grew from £931m to £1bn, and EBITDA of £25.8m was a record for the company.
Kia to open Derby training academy
The Kia Academy is to be relocated to a 40,000 sq.ft “state-of-the-art” facility at St. Modwen Park, Derby. It is scheduled for completion by the end of the year and will employ up to 17 people. The building has been customised exclusively for Kia UK and will train up to 1,500 people for apprenticeships and dealer training programmes a year.
Opening in early 2024, the facility replaces Kia’s previous Nottingham training base, which opened in 2012.
Online experience whitepaper
Following the Auto Retail Live webinar covering retail technology, Keyloop has published a free whitepaper on the subject. Download the paper here: https://keyloop.com/whitepaper-experience-first
WORLD NEWS
New Bravoauto Australasia boss
Inchcape Australasia has appointed Kym Mellow franchise director of its Bravoauto used car operation in Australia. Mellow spent 17 years at Mazda Australia, including 13 years as a member of the executive team.
US retailer pays $9m to settle DOJ case
US retailer Victory Automotive Group is to pay nearly $7m to the government, and more than $1.6m to a whistleblower, to settle a Covid Payment Protection Program loan case. It was alleged to have misrepresented itself as a small business when applying for a $6.3m PPP loan.
The group, which had 2022 revenue of $2.4bn, admitted no wrongdoing under the settlement.
STOCKWATCH
Closing prices on 13 October 2023 and weekly change
Auto Trader Group 636.8p (-1.8p / -0.2%)
Caffyns 550.0p (n/c)
Halfords 190.2p (+6.2p / +3.3%)
Inchcape 688.5p (-36.0p / -5.0%)
Motorpoint 81.8p (-4.4p / -5.2%)
Pendragon 33.5p (+0.45p / +5.7%)
Vertu 77.2p (+5.9p / +7.9%)
COMING UP
Tuesday, UK unemployment
Wednesday, CPI and RPI
Friday, UK retail sales
Friday, GFK consumer confidence
MONEY MATTERS
High interest rates trigger unexpected tax bills
Higher rate taxpayers are being warned about unexpected tax bills on savings due to a rapid rise in savings rates. Savers can only make £1,000 interest a year before they start paying tax; higher-rate taxpayers can only make £500 before they have to pay tax.The average easy access savings account today pays 5.14%.
Chancellor ‘preparing for the worst’
Chancellor Jeremy Hunt has warned official economic forecasts in the autumn statement will be considerably worse than at the budget. Debt interest is likely to be £20bn to £30bn higher than in the spring.
There is speculation the UK could slip into a shallow recession in the coming months, as higher interest rates put pressure on household finances.
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