• FULL-YEAR RESULTS RISK DELAY DUE TO COVID
• DERBY RETAILER TO SELL NEW BRITISH SUPERCAR
• FURROWS EYES 2020 PROFIT
• COVID CASES AT PETER VARDY ABERDEEN
• USED CAR PRICES RISE 4% IN 2020
• KIA AMERICA COO RESIGNS AFTER 1 WEEK
• EU CAR SALES ‘WORST FOR DECADES’
• STOCKWATCH – Cambria said lockdowns will have a “material impact” on its annual trading performance
• COMING UP – November UK Index of Services
• ACCOUNTING WATCHDOG ‘NEEDS REAL TEETH’
• SELF-ASSESSMENT SOFTENED DUE TO COVID
• BLOG: Wanted: views from the dealership

Full-year results risk delay due to Covid

Major listed companies may have to delay their results due to auditors facing a backlog of work amid the latest Covid-19 lockdowns. Staff are under pressure due to school closures during peak auditing season, as almost half the companies on the stock market are drawing up year-end results.

The big four accounting firms have warned that many finance professionals are reducing their working hours due to school closures. The Sunday Times reports city watchdogs are already in talks over the “mounting concerns”.

Several regulators are understood to be planning a joint statement within days, urging finance executives and auditors to “communicate swiftly if they have any difficulties publishing on time”.

There are also challenges in determining whether companies are fit for going concern certification, due to uncertainty over how long the latest lockdown will last.

During the first lockdown, the time given for companies to report was extended from four months to six. This guidance still stands but further clarification is expected this week.

https://bit.ly/3q7g2IM

 

 

Derby retailer to sell new British supercar

Baytree Cars of Derby will become the sole UK agent for the new Mulholland Legend 480 supercar. The ‘modern TVR’ arrives later in 2021 and Mulholland, which is also based in Derby, said the prestige retailer was chosen as it operates both nationally and internationally.

The deal comes after Baytree doubled the size of its showroom in 2020 – and doubled its turnover to £1.5m a month. It has also been recognised as a supercar dealer by the Supercar Driver Club, “the bible of the prestige and performance car industry”.

http://bit.ly/2LmHXWp

 

Furrows eyes 2020 profit

Shrewsbury’s Furrows Holdings has forecast a profit for the year ended 2020 despite the impact of Covid, due to a stronger than forecasted performance in June to October 2020. This is despite reduced activities in April, May and November 2020.

The Ford, Mazda, Kia and Skoda retailer saw pre-tax profits dip slightly in the year ended 2019, from £1.3m to £1.1m. Turnover for the company, which is more than 100 years old, was even at £110m.

http://bit.ly/3owJsQk

 

Covid cases at Peter Vardy Aberdeen

Four positive Covid cases have been linked to Peter Vardy Vauxhall Aberdeen. Close contacts have been instructed to self-isolate. The retailer has since been deep-cleaned and treated with a fogger machine. A spokesman said Peter Vardy has invested heavily in PPE and every location has a digital temperature camera for anyone who enters its premises.

http://bit.ly/3s9I20n

 

Used car prices rise 4% in 2020

Auto Trader is urging retailers to hold firm with pricing after revealing used car prices rose 4% in 2020. This is compared to growth of just 0.5% in 2019. Strong consumer demand is driving increases and robust interest in January means the marketplace is forecasting prices will remain strong in Q1 2021.

 

 

WORLD NEWS

Kia America COO resigns after 1 week

Bill Peffer has resigned as Kia Motors America COO and executive vice president after just one week in the job. Peffer joined Kia in July 2017 as vice president of sales and formerly started his latest role, effectively no.2 in Kia’s US hierarchy, on 1 January. Kia said his abrupt resignation is due to “a new opportunity in the automotive industry”.

http://bit.ly/35rsxHm

 

EU car sales ‘worst for decades’

Europe’s five largest new car markets all suffered significant declines in 2020, according to official figures. They were down 19% in Germany, 25% in France, 28% in Italy, 32% in Spain as well as 29% in the UK (that’s a 28-year low). The figures contrast with the US and China, where sales were more resilient.

http://bit.ly/35rcj0J

 

 

STOCKWATCH

Closing prices on 8 January 2021 and weekly change

Cambria said lockdowns will have a “material impact” on its annual trading performance

Auto Trader Group 595.0p (-1.0p / -0.1%)

Cambria 58.5p (n/c)

Caffyns 385.0p (n/c)

Halfords 295.5p (+28.5p / +10.1%)

Inchcape 659.5p (+16.0p / +2.4%)

Lookers Shares suspended at 21.0p

Marshall Motor Holdings 131.5p (-9.0p / -6.6%)

Motorpoint 285.0p (-1.5p / -0.5%)

Pendragon 12.8p (-0.3p / -2.3%)

Vertu 33.55p (+0.55p / +1.6%)

 

 

COMING UP

Wednesday, November UK Index of Services

Friday, UK balance of trade

 

MONEY MATTERS

Accounting watchdog ‘needs real teeth’

Kwasi Kwarteng, who has replaced Alok Sharma as business secretary, is being urged to reinforce the accounting industry after a series of high-profile scandals. Changes suggested by high-profile City grandees should be implemented, including toughening up the culture of auditing and giving the watchdog “real teeth”.

http://bit.ly/39h268u

 

Self-assessment softened due to Covid

HMRC will take a “very lenient” attitude to people struggling to file self-assessment tax returns by 31 January. An online form is being developed, allowing people to avoid late-filing penalties by citing Covid-19 as a “reasonable excuse”. Some accountants are calling for the deadline to be moved to 31 March, or HMRC will face “logistical and legal chaos”.

http://bit.ly/3nwJE0G

 

BLOG: Wanted: views from the dealership