• MOTORPOINT PROFIT FALL
• REOPENING RALLIES RETAILERS
• JLR RETAILER APPRENTICE DRIVE
• DVSA MOT TESTER CLAMPDOWN
• TRIBUTES PAID TO MARSHALL CHAIRMAN
• RECORD CAR DEMAND IN US
• US RETAILERS CONTINUE TESLA FIGHT
• STOCKWATCH – Quiet on the markets after strong rally last week
• COMING UP – UK unemployment
• UK JOB ADS SOAR
• DIESEL CLAIMS ‘THE NEW PPI’

Motorpoint profit fall

Motorpoint recorded £18.8m profit before tax in the year ended 31 March 2020, 14.9% down from a restated £22.1m in 2019. Revenue was broadly similar at £1bn. The company was affected by the first Covid lockdown coming three weeks prior to the year end: all site-based employees were furloughed during March 2020, along with the majority of head office staff.

Gross profit fell only 1.3% (to £78.9m), which the retailer says was helped by better vehicle preparation cost control and vehicle margins in the second half of 2020. Gross margins grew from 7.5% to 7.8%, due to faster car preparation and improved trade car sales margins.

The company has net assets of £66.5m. It agreed a £15m overdraft with Santander in May 2020, to provide short-term liquidity and aid a strong reopening strategy. Motorpoint to date has not needed to make use of this facility.

Motorpoint says it is the UK’s largest omnichannel retailer, expanding from 12 sites to 13 with the opening of Motorpoint Swansea in January 2020 (adding a 14th site, Stockton-on-Tees, in December 2020). The directors warn subsequent Covid-related closures will have a direct impact on 2021 full year prospects.

In the markets, the full-year results had no impact on the company’s share price.

 

Reopening rallies retailers

Showroom reopening has led to digital enquiry volumes in mid-April rising almost 30% over the highest pre-pandemic peak of March 2019. Rapid RTC’s Darren Preddy said Google activity is up and both phone calls and service enquiries have also increased.

The trends underline the importance of a blended digital and physical retail approach: digital channels are playing a growing role during enquiry but visiting a dealership remains a vital part of the journey. “Moving forward, dealers should ensure their retail processes balance both digital and physical to successfully connect with all types of customers.”

 

JLR retailer apprentice drive

Jaguar Land Rover is stepping up a drive to attract apprentices to its 200-plus UK retailers. There are four schemes on the Retailer Apprenticeship Programme and the firm says that in 2021, it will qualify more apprentices than ever before. Every apprentice is enrolled onto the JLR Learner Management System for guidance on short, medium and long term career paths.

https://bit.ly/3tsyGgw

 

DVSA MOT tester clampdown

The DVSA is getting stricter about personal details for MOT testers, warns the NFDA. Testers whose date of births are not recorded will be unable to submit annual assessment details – and testers can no longer manually enter certificate details. Instead, they must email mot@dvsa.gov.uk for a secure link to provide a digital image of their driving licence.

This year’s annual assessment ends on 30 April and to continue testing after this date, testers must have completed the 2021/22 annual training, assessment and demonstration test.

 

Tributes paid to Marshall chairman

Marshall chairman Richard Parry-Jones CBE passed suddenly on Friday 16 April. A former group vice president of product development in a 30-year career at Ford, the hugely respected Mr Parry-Jones was also recently appointed to the board at Aston Martin. “Richard was not only an exemplary chairman but a great mentor and friend to me,” said Marshall CEO Daksh Gupta. “We were fortunate to have him as our chairman and I will miss him enormously: it is a tragedy that we, and the wider industry, have lost him so soon.”

The Auto Retail Network extends its sadness and sympathies to Mr Parry-Jones’ family, friends and colleagues.

 

 

WORLD NEWS

Record car demand in US

US auto retailers are reporting empty lots due to record demand for new and used cars. “People got the money from the government, and they’re not going on vacation,” said Southwest Motors owner Mike Zavilslan. “The demand is the highest that we’ve ever seen.” Retailers are also reportedly giving customers “an incredible amount of money” even for fair-condition trade-ins, simply to increase stock.

https://bit.ly/3tvmwDB

 

US retailers continue Tesla fight

US retailers are fighting moves to permit electric vehicle manufacturers to sell directly to customers. In Connecticut, bill SB 127 – known as the ‘Tesla bill’ – aims to roll back some aspects of state dealer franchise law obliging OEMs to sell through franchised retailers. Tesla is backing similar legislation in other US states. “This will funnel Connecticut dollars out of the state to California,” said Hoffman Automotive’s Elliot Matos. “It doesn’t go back into the community.”

https://bit.ly/3x5bLtO

 

STOCKWATCH

Closing prices on 16 April 2021 and weekly change

Quiet on the markets after strong rallies last week

Auto Trader Group 577.6p (+8.2p / +1.4%)

Cambria 77.0p (+1.0p / +1.3%)

Caffyns 370.0p (n/c)

Halfords 380.2p (-0.2p / -0.05%)

Inchcape 796.0p (+9.0p / +1.1%)

Lookers 67.0p (-4.0p / -5.7%)

Marshall Motor Holdings 175.5p (-0.5p / -0.2%)

Motorpoint 260.0p (n/c)

Pendragon 19.95p (-0.55p / -2.7%)

Vertu 45.5p (+3.4p / +7.7%)

 

 

COMING UP

Tuesday, UK unemployment

Wednesday, CPI and RPI

Friday, retail sales, GFK consumer confidence

 

MONEY MATTERS

UK job ads soar

New job postings are soaring in the UK thanks to rising business confidence as the country emerges from the pandemic. There are currently 1.37 million active job adverts in the UK, says the Recruitment and Employment Confederation: 140k were added during the week of 5-11 April and 181k were added in the previous week – the highest figure since the Covid crisis began. The trend is expected to continue.

https://bit.ly/2RM77AL

 

Diesel claims ‘the new PPI’

The largest compensation movement since the PPI scandal has seen nearly 400k motorists sign up with law firms to win compensation for being mis-sold diesel cars. Lawyers are seeking to persuade owners of almost every older diesel car to register their interest. Almost 10 million vehicles might be affected and one legal figure said the average payout could be £12k.

https://bit.ly/3ttwntx