Auto Retail Agenda: 26 September 2022
24 September 2022
- PENDRAGON SHAREHOLDER WARNS OF POUND-DOLLAR PARITY
- MOTORPOINT CHAIR TO JOIN ScS
- FORDS OF WINSFORD’S £1m PROFIT
- POLESTAR SPACES WIN DESIGN AWARD
- LEARN HOW CHINA WILL SHAKE UP UK AUTO RETAIL
- STELLANTIS OPENS USED CAR BUSINESS IN AFRICA
- 2022’S TOP US RETAILERS REVEALED
- STOCKWATCH
- COMING UP: UK GDP
- INTEREST RATE FEARS STALK INDEBTED FIRMS
- PORSCHE HOPES TO FLOAT AT €75bn
Pendragon shareholder warns of Pound-Dollar parity
Crispin Odey, whose asset management firm is one of the largest Pendragon shareholders, has warned Sterling risks heading to dollar parity for the first time ever.
The trader has reportedly been shorting UK debt. However, he said “there is much that I like in Kwasi’s budget. It is bravely Tory”. He added he will become “long term optimistic” on UK assets if a Labour government is avoided.
Odey Asset Management is the second-largest shareholder in Pendragon, which last month turned down a takeover bid at 29p a share. Pendragon closed last week at 22.7p.
Motorpoint chair to join ScS
Motorpoint chair John Walden has been appointed independent non-executive director and non-executive chair designate of home furnishings retailer ScS Group, effective 1 March 2023. He will become ScS chair on 30 November next year. The former Argos chief and Holland & Barrett chair joined Motorpoint in January this year as independent non-executive chairman and head of the nomination committee.
Motorpoint has also ended its title sponsorship of Motorpoint Arena Cardiff after more than 11 years, which reverts to its original name of Cardiff International Arena.
Fords of Winsford’s £1m profit
Graham Bell Ltd, one of two auto retail businesses trading from the site that includes Fords of Winsford, has revealed profit before tax of £1m for the year ended December 2021, up from a £244k figure in 2020. Turnover grew from £54.9m to £72.7m. “The directors are confident that the company is well placed to continue to grow turnover profitably.”
Polestar Spaces win design award
Polestar’s Spaces, the firm’s retailer-run showrooms, have been named Most Immersive Brand Home in highly-regarded title Wallpaper’s 2022 awards. Last week, it was announced the UK’s largest Polestar Space will open on 14 October at Battersea Power Station.
Learn how China will shake up UK auto retail
The UK is set to see an influx of new brands from China. How will they impact the UK market and what are the new opportunities for retailers that they bring?
Find out on 13 October at 9am in the latest Auto Retail Live webinar, where IM Group MD William Brown, Urban Science China MD Chee-Kiang Lim and Auto Trader commercial director Ian Plummer will share their experience.
Sign up here and join the webinar which examines the most significant Chinese brands and their aspirations for the UK and Europe.
WORLD NEWS
Stellantis opens used car business in Africa
Stellantis has launched a direct-to-consumer used car business in sub-Saharan Africa called Auto24. It has done so by taking a stake in Africa’s leading online automotive marketplace, Africar Group. Africa currently has a car parc of 50 million, while the population is expected to reach 1.7 billion by 2030.
2022’s top US retailers revealed
Hendrick Automotive Group and AutoNation are the top retailers in the US, according to the 2022 Automotive Reputation Report of more than 20,000 automotive brands. Hendrick topped both the private dealer groups and the overall rankings, the fourth year running it has emerged on top. AutoNation is the top public retailer, with Penske in second place.
STOCKWATCH
Closing prices on 23 September 2022 and weekly change
Auto Trader Group 575.4p (-38.8p / -6.5%)
Caffyns 550.0p (n/c)
Halfords 147.9p (-9.0p / -5.9%)
Inchcape 720.5p (-16.5p / -2.2%)
Lookers 74.7p (-5.3p / -6.8%)
Motorpoint 183.25p (-3.25p / -1.7%)
Pendragon 22.7p (+1.1p / +4.9%)
Vertu 43.1p (-0.65p / -1.4%)
COMING UP
Wednesday, BRC shop price index
Thursday, Porsche IPO
Friday, UK GDP
MONEY MATTERS
Interest rate fears stalk indebted firms
There are fears for the future of indebted companies due to an expected surge in interest rates after last week’s mini-budget. Markets are now pricing in a rise to 5% by March 2023. Hundreds of thousands of companies are already said to be in financial distress. Consumer-facing businesses will suffer first, particularly ‘zombie’ companies with high levels of debt.
Porsche hopes to float at €75bn
Porsche could become the fifth-largest float in European history this Thursday if it hits a hoped-for valuation of €75bn (£65bn) on the Frankfurt stock exchange. Volkswagen could receive as much as €19.5bn in the deal. The company hopes it will help close the gap to Ferrari: its shares trade at 38 times its earnings per share; Volkswagen trades at four times.
The float aims to secure the ticker P911.
Tags:
Auto24, AutoNation, China, Fords of Winsford, Hendrick, Motorpoint, New Entrants, Odey, Pendragon, Polestar, Porsche, Stellantis 
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