Auto Retail Agenda: 23 December 2019
22 December 2019
- LOOKERS BOLSTERS BOARD
- SIMONSTONE BRISTOL SUDDENLY CLOSES
- CARGIANT WINS HS2 LAND BATTLE
- J&J MOTORS PROFITS JUMP
- AUSTRALIAN REGULATORS TO INVESTIGATE VW LOANS
- GUMTREE ACQUIRES AUSTRALIA’S CARSGUIDE AND AUTOTRADER
- STOCKWATCH – Inchcape share price hits 12-month high
- LAUNCH DIARY – Peugeot 2008, Renault Captur
- COMING UP – No major announcements due this week
- CBI REPORTS ‘WORST TRADING IN A DECADE’
- OUTLOOK FOR ECONOMY IMPROVES
- BLOG: CO2 is way too high: retailers will be pivotal if we’re to cut it 25% in a year
Lookers bolsters board
Lookers general counsel and company secretary Glenda MacGeekie has left the company. Philip Kenny has been contracted to take over the chief legal officer and company secretary role, effective 20 December 2019, on an interim basis.
Mr Kenny, said the company, is a qualified solicitor and has “considerable experience in corporate finance and commercial law”. His career includes serving as a senior lawyer at BAE Systems.
The FTSE 250 company also announced the appointment of Victoria Mitchell as a non-executive director. A barrister, she was previously chief operating officer of Capital One (Europe) also serving as chief risk officer and chief legal counsel. She remains a non-executive director with the West Bromwich Building Society.
Lookers executive chairman Phil White said Ms Mitchell “brings board experience across operations and risk within the financial services sector. She is another great addition to the board at this very important time for us”.
Simonstone Bristol suddenly closes
FCA Group retailer Simonstone Motor Group suddenly closed its last remaining outlet on Bath Road, Bristol, on Friday 20 December. Staff were forced to hand back their cars and find their own way home, reports the Bristol Post. Transporters took away cars throughout the day and “dozens of customers” were left waiting to see if they have lost deposits.
The firm’s Weston-Super-Mare Hyundai branch suddenly closed at the end of October. Simonstone’s 2018 results show it made a profit of almost £80k on turnover of £23.3m after losses in 2017. A management buyout in December 2017 saw Michael Hooper take over as director. The company has yet to officially confirm the news.
CarGiant wins HS2 land battle
A compulsory purchase order for CarGiant’s site in West London has been abandoned. The Old Oak and Park Royal Development Corporation (OPDC) had earmarked the site for housing. It will remain as industrial land for the full period of the OPDC plan, which runs to 2038.
CarGiant owner Geoff Warren said the business will now move ahead with “significant plans to grow” and create “many hundreds more highly skilled jobs”. CarGiant currently employs 800 staff.http://bit.ly/2ZjbPWf
J&J Motors profits jump
Welsh car retailer J&J Motors has reported a rise in pre-tax profits of more than 70% in the year to 30 June 2019. It made £984k on turnover of £36.4m, compared to £571k in the previous year. J&J Motors sells Fiat, Ford, Nissan and Suzuki at four sites in south Wales. Although new car sales fell 6.1%, its used car sales grew 5.9%.
WORLD NEWS
Australian regulators to investigate VW loans
The Australian Securities and Investments Commission has launched proceedings over Volkswagen consumer loans. It alleges a failure to make proper checks into borrowers’ living expenses or whether loans were suitable. The allegations relate to over 49k loans between 2013 and 2016.
Gumtree acquires Australia’s Carsguide and Autotrader
Australia’s Carsguide and Autotrader have been acquired by eBay-owned Gumtree. The deal for Cox Automotive Media Solutions, its Australian subsidiary, is reportedly worth $80m. The business was also 30% owned by a group of Australian auto retailers. It mirrors Gumtree’s acquisition in February 2019 of motors.co.uk in the UK.
STOCKWATCH
Closing prices on 20 December 2019 and weekly movement
Inchcape share price hits 12-month high
Auto Trader Group 594.4p (+20.6p)
Cambria 68.5p (+0.5p)
Caffyns 400.0p (n/c)
Inchcape 693.5p (+5.0p)
Lookers 58.0p (+0.1p)
Marshall Motor Holdings 150.0p (-6.0p)
Motorpoint 289.0p (+6.0p)
Pendragon 12.52p (+0.52p)
Vertu 37.0p (-4.0p)
LAUNCH DIARY
Peugeot 2008 and e-2008, ordering open with 2008 prices from £20,150 and e-2008 from £28,150 (including Plug-in Car Grant). Deliveries from April 2020
Renault Captur, ordering open with prices from £17,595, deliveries begin March 2020
Hyundai i10, all-new city car goes on sale 18 January with prices from £12,495
COMING UP
No major business announcements are due this week (but, reports the Sunday Telegraph, watch for surprises and companies trying to “bury bad news”).
MONEY MATTERS
CBI reports ‘worst trading in a decade’
The latest CBI growth indicator reports private sector activity declined at its fastest rate in a decade in the three months to December. CBI deputy chief economist said it should be “of grave concern” with marked falls in every sector of the economy.
The UK economy grew 0.4% in the third quarter, but analysts believe the Q4 figure will report little or no growth. The Bank of England revised its Q4 projection downwards to 0.1%. Two members of the MPC last week voted for an immediate cut in interest rates.http://bit.ly/2SjbHVg
Outlook for economy improves
An influential consumer confidence survey says the outlook for the UK economy has brightened. The Gfk confidence index rose three points this month; it remains in negative territory, but households are feeling more optimistic and “increasingly committed to making large purchases”.
BLOG: CO2 is way too high: retailers will be pivotal if we’re to cut it 25% in a year
Tags:
AutoTrader, Cargiant, Carsguide, CBI, eBay, Gumtree, Inchcape, J&J Motors, Lookers, Simonstone, Volkswagen 
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