Auto Retail Agenda: 3 September 2018
02 September 2018
- RYBROOK: PROFITS DOWN BUT SHARES UP
- WLTP POWERING AUGUST REGISTRATION BUBBLE
- BOOK NOW FOR AUTO RETAIL NETWORK’S ECONOMIC FORUM
- USED UK IMPORTS ACCUSED OF WORSENING IRISH AIR QUALITY
- EAST LONDON TO FINE PETROL AND DIESEL CARS FROM MONDAY
- PENDRAGON RECRUITING GRADUATES FOR CAR STORE
- WORLD NEWS – MOODY’S DOWNGRADES FORD CREDIT TO ONE LEVEL ABOVE JUNK
- STOCKWATCH – Motorpoint up
- LAUNCH DIARY – petrol-only Outlander
- COMING UP – NFDA DAS results
- MONEY MATTERS – Heat is on for payday lenders
- OUR BLOG – Summer of 68
Rybrook: profits down but shares up
Retail group Rybrook Holdings has announced a year-on-year reduction of £6.1 million to £4m for the year ending 31 December 2017 before goodwill and exceptional items. However, its financial statement reported an increase of £2.3m in shareholders’ equity to £33.4m and a £3m jump in its cash balance to £5m.
The fall in profits was attributed to Rybrook’s £8.5m acquisition of Paymill Motor Holdings in June 2017, comprising Wolverhampton BMW, BMW Motorrad and Mini franchises. Conversely, the group generated £2.4m by leasing two freehold premises included in the acquisition, though it also incurred £1m in property costs.
The group also made a series of significant moves in 2016, including the acquisition of JLR specialist Huddersfield Motor Traders for £11.1m, a new multi-brand premises in Bristol with Bentley, Lamborghini, McLaren and Rolls-Royce franchises and the sale of its “trade and certain assets” of its Jaguar franchise operations in Chester.
The statement claimed the Bristol franchises were “beginning to gain traction” and that the newly-acquired businesses were “progressing”.
WLTP powering August registration bubble
August new car registrations look set to end the month vastly up on the same month last year, according to industry sources. The hike is due to manufacturers pushing cars into the networks that have to be registered before 31 August because of WLTP emissions regulations.
Figures for registrations in August, seen by Auto Retail Network, with five days still to go show the month was more than 20% up on last year with the most recent daily figure up more than 1,000%.
The August new car registration bubble is widely expected to be offset by a significant dip in September registrations as networks work to clear the stock of nearly-new cars from August.
Book now for Auto Retail Network’s Economic Forum
Auto Retail Network is to host its landmark Economic Forum at the QEII Conference Centre, Westminster, on 16 November, which will bring together some of the UK’s most senior political, automotive and financial figures to explain the impact of the country’s impending exit from European Union on the retail sector.
Eight expert speakers have been confirmed for the event, among them Sir Keir Starmer, shadow secretary of state for exiting the European Union, Andy Barrett, managing director, Ford of Britain and George Parker, political editor of the Financial Times.
Tickets are strictly limited to 100 places and cost £298 for Auto Retail Network subscribers and £445 for non-subscribers. Click here for more information and bookings.
Used UK imports accused of worsening Irish air quality
Nissan Ireland’s CEO, James McCarthy, has claimed that used cars imported from the UK are responsible for degrading the country’s air quality and reducing tax “Over 100,000 used cars will be imported into Ireland in 2018. About 80,000 of these cars are ‘dirty diesels’ that do not meet the latest Euro 6 emissions standards”, said Mr McCarthy, “however, a loophole in the law allows these cars to be sold and put onto Irish roads because they were first registered in the UK.
“The Government is moving further and further away from achieving its target as an average of 1,500 dirty diesel cars are put onto Irish roads each week. We are currently importing nearly 100 of these polluting cars for every electric vehicle sold. This is seriously undermining the government’s electro-mobility strategy.”
The manufacturer estimated that the trend had preventing up to 50,000 new car sales this year, which equaled a tax loss of €300,000,000.
East London to fine petrol and diesel cars from Monday
A local air quality scheme that will see petrol and diesel cars fined for travelling on certain roads in East London will come into force on Monday 3 September. Drivers of vehicles that are not electric or hybrids will have to pay £130 if they travel on certain roads in Hackney and Islington from 7am-10am and 4pm-7pm on weekdays.
The roads in question are: Blackall Street, Cowper Street, Paul Street, Tabernacle Street, Ravey Street, Singer Street, Willow Street, Charlotte Road and Rivington Street.
The City of London Corporation is said to be planning a similar trial in April, limiting access to Moor Lane, near Moorgate, to ultra-low emission vehicles.
Pendragon recruiting graduates for Car Store
Pendragon is recruiting graduates for its Evans Halshaw Car Stores, which specialise in high street-style used car sales. The group is appealing to applicants with a degree to join a three-tier 18-24-month programme that will see them begin as a customer service assistance, rise to a sales specialist and end up a sales controller at a new site.
Salaries start at £23,000, rise to £24,000 after four months and finish at £25,000 plus £15,000 bonus potential and a car. The group said applicants would need to be “100% happy with relocating” and offered to assist with relocation costs on completion of the programme.
WORLD NEWS
Moody’s downgrades Ford credit to one level above junk
US credit rating firm Moody’s has downgraded Ford’s credit rating from Baa3 from Baa2, described as “one level above junk”. The agency referenced “erosion in the company’s global business position and the challenges it will face implementing its Fitness Redesign program,” as reasons for the demotion.
Earlier this year, Moody’s changed Ford’s rating outlook from negative to stable, but has subsequently acknowledged the manufacturer’s difficulties, after it announced an $11 billion global restructuring move over the next three to five years.
Earlier today, the Sunday Times reported that Ford is planning to axe the Mondeo and reduce its international workforce by 24,000 (12%) in a bid to turn around its European arm’s profits.
STOCKWATCH
End of week share prices
(As at market close, Friday; prices for previous week in brackets)
BCA Marketplace 236.74p (-1.76p)
Caffyns 443.00p (+18.00p)
Cambria Auto 56.50p (+0.5p)
Inchcape 692.00p (-2.50p)
Lookers 105.60p (-1.60p)
Marshall Motor 160.00p (-1.50p)
Motorpoint Group 232.00p (+7.00)
Pendragon 25.00p (+0.01p)
Vertu Motors 49.25p (+1.75p)
LAUNCH DIARY
Mitsubishi Outlander petrol-only version available for the first time; on sale now from £27,680.
Nissan Navara N-Guardspecial edition pick-up; double cab only with 190hp 2.3 dCi engine. On sale now from £28,075 excluding VAT.
Fiat 500 Xfacelifted version of the 500’s crossover spinoff; orders now open and starts at £16,995.
COMING UP
The latest NFDA Dealer Attitude Survey results will be published on Auto Retail Agenda at one minute past midnight. Head to the homepage to read them if you’re still up.
Wednesday:SMMT new car registration figures for August.
Thursday: BCA Marketplace AGM.
MONEY MATTERS
Wonga collapse to pressure payday lenders
The demise of the UK’s biggest payday lender, Wonga, is expected to increase pressure on its rivals, as criticism from customers and calls for stricter regulation ramp up. The company went into administration on Thursday, following a rise in claims; claims management specialists have suggested that attention could turn to Wonga’s competitors in the wake of its collapse.
Homebase to close 42 stores
DIY and gardening retailer Homebase is to close 42 of its UK stores, leaving 1,500 jobs at risk following an approved proposal by creditors to bring it back to profitability. More than 95% of the firm’s landlords voted to approve a Company Voluntary Arrangement – an insolvency procedure used to shut under-performing outlets – at a meeting on Friday, delaying the imminent threat of administration.
OUR BLOG
The summer of 68
If the sources in our registration story above are accurate – and we have every reason to believe they are – then Wednesday’s new car registration figures are likely to herald August as the best month of 2018.
It’s a similar trend to last year, when March became best month for new car sales on record, as registrations were dragged forward in advance of the then new VED regime. This is even bigger, though, as the scramble to dodge WLTP – which kicked in yesterday – has seen daily registration increases into four figures.
March 2017’s spike was the last hurrah before the new car market’s erosion began, although it’s worth remembering that, though fewer than their immediate predecessors, folk have still bought a lot of cars in 2017 and 2018.
The rest of the year is something of an abyss, especially September. In what we might think of as a normal year (remember those?) this month would typically be strong for new metal, as the plate change would bring an uplift in sales, but I get the feeling we’re not going to be able to say the same for the 68 plate.
In a sense, the new reg’ may have come at the right time, as September is going to need something to pick up the slack, but – and I’m speculating – I doubt it’s going to be enough for some buoyant SMMT figures next month.
Jack Carfrae
Acting editor
Auto Retail Agenda
Tags:
Car Store, economic forum, Fiat, fines, Ford, imports, Ireland, London, Mitsubishi, Moody's, Nissan, Pendragon, petrol and diesel, Rybrook, WLTP 
Why Subscribe?
As an auto retail executive you need insightful and unique industry intelligence to boost your business potential. Here’s a taste of what Auto Retail Network has to offer:
- Get informed and boost your business potential
- More than 1,200 fellow executives have joined us since launch
- Independent, carefully crafted, unique content relevant to you and your business
- Develop a greater awareness of market trends and opportunities
- Access to a wide range of materials whenever, wherever and however you want it
- Significant discounts on ARN events, reports and other publications
