Auto Retail Agenda: 17 January 2022
14 January 2022
- EXPLAINED: TODAY’S NEW COVID RULES
- RON BROOKS CELEBRATES 3.6% RETURN
- ‘EXCEPTIONAL’ HALFORDS AUTOCENTRES UP 33%
- RENAULT ACCELERATES EV PLANS – BUT DACIA DELAYED
- GM LAUNCHES CARBRAVO TO TAKE ON CARVANA
- BMW FACES LAWSUIT FOR THIRD-PARTY RETAILER BAN
- STOCKWATCH: Vertu up 9.2%
- COMING UP: ONS inflation figures
- ECONOMY ABOVE PRE-COVID LEVEL FOR FIRST TIME
- TECH STOCK BUBBLES TO BURST?
Explained: today’s new Covid rules
As part of a bid to get more people back to work, the Government has decreased the Covid self-isolation time.
From today, the self-isolation period for those who test positive for Covid-19 has been cut from seven to five days in England. Individuals will be able to leave isolation from day six, provided they:
- Have two negative tests on day five and day six
- Do not have a temperature
Tests must be at least 24 hours apart. If either test is positive, people must wait 24 hours before testing again.
The NFDA has published UK health data that shows 31.4% of Covid sufferers remain infectious after five days, compared to 15.8% after seven days – but taking two tests from day six cuts infectiousness to 6.2%.
From 11 January, those who got a positive rapid lateral flow test were not required to take a confirmatory PCR test, although they must self-isolate immediately.
There is also speculation PM Boris Johnson will lift Plan B Covid restrictions, which require people to work from home where they can, from 26 January. Some rules on face masks may remain. An announcement is expected this week.
In Scotland, from today, most people need to have a booster dose in order to be recognised as fully vaccinated under the Covid certification scheme. Restrictions on numbers at outdoor events have been lifted, although indoor events remain limited to 100 standing and 200 sitting. Rules will also ease in Wales from 21 January.
Ron Brooks celebrates 3.6% return
Derbyshire’s Ron Brooks Group has reported a pre-tax profit record of £1.24m for the year ended June 2021 (up 69% on 2020), on turnover of £34.2m. This represents a 3.6% return on sales. The retailer stresses it has no debt, £5m in cash reserves and is “well positioned to capitalise on any new business opportunities”.
A family-owned retailer, Ron Brooks has two Toyota and one Suzuki site, and is believed to be Toyota’s longest-serving UK partner, celebrating 50 years in 2023. Group strategy and innovation manager Tom Slack told Auto Retail Agenda the results are a “powerful message for smaller groups against PLC rhetoric – that we can do well too”.
‘Exceptional’ Halfords Autocentres up 33%
Halfords has described the performance of its Autocentres as “exceptional” after reporting 33.1% like-for-like growth over two years. This was driven both by a Q3 MOT peak and its ongoing investment in the Autocentres brand and digital platforms. Halfords continues to target full year profit before tax of £80m to £90m when its preliminary full-year results are released on 16 June.
The company adds that, following the acquisition of National, it now expects to carry out 7.5 million motoring service jobs a year from more than 1,400 fixed or mobile motoring services locations.
Renault accelerates EV plans – but Dacia delayed
Renault will become an EV-only brand in Europe by 2030. Earlier in 2020, the firm was targeting a 90% electric range. Dacia, however, will become electrified “at the last possible moment”, as a reflection of the brand’s value-for-money proposition.
WORLD NEWS
GM launches CarBravo to take on Carvana
GM is taking on Carvana with CarBravo, “a new way to shop for used vehicles” which allows customers to go online, at retailers, or a combination of both. Both GM and competitor vehicles are offered in the “significantly expanded inventories of both the dealer and a national central stock”. CarBravo will use a new GM digital retail platform, and launches to customers in spring 2022.
BMW faces lawsuit for third-party retailer ban
A Californian BMW customer is suing the brand, and BMW Financial Services, alleging a ban on buyouts from third-party retailers blocked the sale of his 2019 X3 to a Toyota retailer. This cost him a $4k profit.
“Our primary goal is to support BMW franchise dealers by creating opportunities to keep more vehicles in our franchising network,” said a BMW spokesman at the time. “We will temporarily suspend payoffs from third-party dealers as of October 1.”
STOCKWATCH
Closing prices on 14 January 2022 and weekly change
Auto Trader Group 687.6p (-26.8p / -3.8%)
Caffyns 575.0p (+25.0p / +4.4%)
Halfords 357.0p (-2.4p / -0.6%)
Inchcape 879.5p (-27.0p / -3.0%)
Lookers 74.2p (+0.3p / +0.4%)
Marshall Motor Holdings 397.0p (+3.0 / +0.7%)
Motorpoint 308.0p (-23.0p / -7.1%)
Pendragon 23.7p (+0.4p / +1.7%)
Vertu 74.8p (+6.6p / +9.2%)
COMING UP
Tuesday, UK unemployment
Wednesday, ONS inflation figures
Wednesday, CPI and PPI
Friday, GFK Consumer Confidence
MONEY MATTERS
Economy above pre-Covid level for first time
Tech stock bubbles to burst?
The threat of interest rate rises are casting a shadow over tech stocks – stoking fears one of the stock market’s biggest bubbles may be set to burst. A rise in interest rates decrease the value of future profits, lessening the appeal of loss-making companies who promise rewards down the line.
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