Auto Retail Agenda: 10 October 2022
08 October 2022
- MOTORPOINT WARNS ON PROFITS
- CONFIRMED: TREVOR FINN IS BACKING HEDIN PENDRAGON DEAL
- CHINA NEW ENTRANT NIO IN 2023 UK LAUNCH
- NEW ENTRANTS REPORT OPEN FOR ORDERS
- INCHCAPE LAUNCHES BRAVOAUTO IN AUSTRALIA
- CARVANA STORE SUSPENDED
- STOCKWATCH
- COMING UP: Auto Retail Live China New Entrants
- DEBT SHOCK FOR BUSINESSES LOOKING TO REFINANCE
- PERSONAL ALLOWANCE REDUCTION ‘A STUPID TAX’
Motorpoint warns on profits
Motorpoint shares tumbled to a five-year low last week after it reported a 9% decline in volumes in September in its H1 update. It blamed the “adverse economic news flow and political uncertainty which… undermine already fragile consumer confidence”.
H1 revenue grew 30% to £785m; profit before tax fell from £13.5m to £3m.
Macroeconomic conditions continue to worsen, it warned, which will “challenge financial performance in FY23, the extent of which is difficult to predict”. The company plans to carefully manage its cost base, and align consumer financing rates with borrowing costs.
Confirmed: Trevor Finn is backing Hedin Pendragon deal
Trevor Finn has been confirmed as one of the backers of the Hedin Mobility Group takeover offer of Pendragon. He holds a 1.22% stake. Anders and Helena Hedin are also named, along with HHS Invest AB. The total position of the offeror in Pendragon equals 27.59%.
In September, Hedin its second takeover bid for Pendragon in six months – a 29p per share offer that valued Pendragon at £411m. Pendragon subsequently said it was reviewing its options and indicated it could sell Pinewood DMS.
Hedin said it was “surprised” by the Pendragon announcement and withdrew a block on rival bids, stating it would consider any takeover bid of 35p a share or more.
China new entrant Nio in 2023 UK launch
Chinese ‘Tesla-beater’ brand Nio has confirmed it will launch in the UK in late 2023. It will lead with the Nio ET5, a Tesla Model 3 rival, and another smaller model suited to the UK. Battery swap stations will be introduced, and the company has identified a site in London as its signature ‘Nio House’.
Staff are being recruited, including a brand manager and sales manager. An overall UK general manager was hired last week: their name has not been disclosed.
New Entrants report open for orders
Retailers can now pre-order Auto Retail’s China New Entrants Report, which analyses all the exciting new brands set to transform the UK market in coming years. The report will be released after this Thurday’s Auto Retail Live webinar, where IM Group MD William Brown, Urban Science MD Chee-Kiang Lee and Auto Trader commercial director Ian Plummer will share their experience and insight about China’s new brands.
Sign up here: https://bit.ly/3SThA7T
WORLD NEWS
Inchcape launches Bravoauto in Australia
Inchcape has launched its used car brand Bravoauto in Australia. Cars come with a seven-day exchange guarantee, six months / 8,000km warranty, 150-point safety check and 12 months’ free roadside assistance. Bravoauto launched in the UK in late 2021.
Carvana store suspended
Used car retailer Carvana’s licence at a Michigan store has been suspended over repeated violations around titles, registrations, odometer records and “fraudulent acts… where Carvana employees admitted to destroying title applications”. The company also violated the terms of a probation agreement 127 times.
A Carvana spokesperson called the state’s action is “another example of gross regulatory overreach”.
STOCKWATCH
Closing prices on 7 October 2022 and weekly change
Auto Trader Group 523.6p (+8.6p / +1.6%)
Caffyns 550.0p (n/c)
Halfords 167.4p (+35.6p / +23.7%)
Inchcape 705.5p (+23.0p / +3.3%)
Lookers 67.75p (+1.75p / +2.6%)
Motorpoint 148.0p (-31.0p / -18.9%)
Pendragon 27.0p (n/c)
Vertu 44.6p (+2.35p / +5.4%)
COMING UP
Tuesday, UK retail sales
Tuesday, UK unemployment
Wednesday, UK GDP
Wednesday, FCA annual public meeting
Thursday, Auto Retail Live China New Entrants – sign up here: https://bit.ly/3SThA7T
MONEY MATTERS
Debt shock for businesses looking to refinance
Businesses looking to refinance are being warned of a ‘debt shock’ due to the rising cost of capital. Retail is particularly at risk due to a lack of confidence from financial institutions in the sector. Some may even resort to company voluntary agreements to facilitate restructuring.
Personal allowance reduction ‘a stupid tax’
The personal allowance reduction for those earning over £100k has been listed as one of five ‘stupid taxes’. For every £2 you earn over £100k, you lose £1 of your £12,570 tax-free income allowance. “Every £1 you earn over £100k costs you 62p, when you take into account national insurance.”
Other ‘stupid taxes’ include the high income child benefit charge, stamp duty, capital gains tax and inheritance tax.
Tags:
Bravoauto, Carvana, debt, Hedin, Inchcape, Motorpoint, New Entrants, Nio, Pendragon, personal allowance, Trevor Finn 
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
