Auto Retail Agenda: 4 January 2022
03 January 2022
- NORTON WAY PROFIT UP DURING COVID
- DEMAND BOOMS FOR RETAIL SITES
- GINETTA CARS HEAD OF SALES MOVES TO CAZOO
- INCHCAPE’S HUNTERS JLR GETS PLANNING PERMISSION
- KPMG WARNS OF 30% USED CAR PRICE PLUNGE
- WHAT ARE ‘AS IS’ CAR SALES?
- STOCKWATCH – Inchcape has been tipped as a share to shine in 2022 – with analysts estimating it has £1.25bn to carry out mergers and acquisitions
- COMING UP – 2021 new car registrations
- SMALL FIRMS FACE LATE PAYMENT CRISIS
- CALL TO CUT VAT ON ENERGY BILLS
Norton Way profit up during Covid
Norton Way Motors saw profit before tax rise from £2.6m to £3.2m in the year ended 31 March 2021 – despite turnover falling from £283m to £200m. Return on sales was up from 1.0% to 1.7% and the company reduced its net interest-bearing debt by 70% from £5.3m to £1.6m.
A total of £2.7m was received in government grants. £1.4m of dividends were proposed and paid, after nil were paid in 2020.
Demand booms for retail sites
Rather than a rise in vacancy rates, Covid has led to a boom in demand for suitable retail dealership sites. New online entrants in the industry are still seeking a physical presence, not just as a sales base but for somewhere to prepare, store and repair vehicles.
The broader growth in home delivery is also generating record demand for industrial space, leading to higher rents. Mark Frostick from property company Rapleys is also warning retailers that those who rent a workshop and have a review in their lease may face a significant increase in rates.
Ginetta Cars head of sales moves to Cazoo
Sam Tomlinson has been appointed sales director at Cazoo. A former strategic account director at Manheim (and with a BSc in Motorsport Management), he moves from Ginetta Cars, where he was international sales and business development manager, and most recently head of sales.
Inchcape’s Hunters JLR gets planning permission
Norwich’s Hunters Jaguar Land Rover is to relocate its Cromer Road site to a newbuild location on the new 48-acre Broadland Gate industrial park. It received planning permission after partner Taylor Design Architects redrew the boundaries of the showroom to avoid the roots of nearby trees under a tree protection order.
WORLD NEWS
KPMG warns of 30% used car price plunge
KPMG forecasts new car supply and demand will achieve equilibrium between October 2022 and 2023 – and warns used car prices could fall “abruptly” and raise negative equity issues once the market anticipates the turnaround. “Used car prices will eventually return to the traditional relationship with new vehicle prices… in other words, a 20% to 30% plunge in used vehicle prices is on the cards.”
What are ‘as is’ car sales?
Many US state ‘lemon laws’ don’t cover used cars and many are sold ‘as is’. The country’s Uniform Commercial Code allows sellers to exclude parts if it through the use of disclaimers like ‘as is’. Legally, this makes it clear there is no implied warranty – but many customers don’t realise this. An attorney is now urging car buyers to read the Buyer’s Guide displayed on all used cars, where ‘as is’ notifications must be mentioned under FTC rules.
STOCKWATCH
Closing prices on 31 December 2021 and weekly change
Inchcape has been tipped as a share to shine in 2022 – with analysts estimating it has £1.25bn to carry out mergers and acquisitions
Auto Trader Group 740.0p (+21.4p / +2.9%)
Caffyns 525.0p (n/c)
Halfords 345.4p (+15.0p / +4.4%)
Inchcape 909.5p (+52.0p / +5.8%)
Lookers 66.5p (+2.9p / +4.4%)
Marshall Motor Holdings 393.0p (n/c)
Motorpoint 350.0p (+31.0p / +9.2%)
Pendragon 23.2p (+1.4p / +6.2%)
Vertu 68.8p (+3.6p / +5.3%)
COMING UP
Tuesday, BRC shop price index
Tuesday, consumer credit
Tuesday, DVLA reopens 8am
Thursday, SMMT December and FY 2021 new car registrations
Friday, Halifax house price index
MONEY MATTERS
Small firms face late payment crisis
The future of 440k small firms could be threatened by a late payment “crisis” warns the Federation of Small Businesses. Big FTSE companies are often guilty of late payment, it says, and is urging all businesses to abide by the 30-day prompt payment code.
Call to cut VAT on energy bills
Conservative MPs and peers are calling on the prime minister to tackle the spiralling cost of energy bills. Scrapping the 5% VAT rate on energy bills and pausing environmental levies could save the average household £200 on their energy bill. Labour has also called for VAT on fuel bills to be lifted.
Tags:
Carzam, Cazoo, Covid, Ginetta, Hunters, Inchcape, KPMG, late payment, Manheim, New car registrations, Norton Way, Rapleys, VAT 
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