Auto Retail Agenda: 23 November 2020
21 November 2020
- RYBROOK TURNOVER UP, PROFIT DOWN
- EASTERN WESTERN PROFIT UP 15%
- SNOWS MAINTAINS PROFIT IN 2019
- CARWOW HONOURS RETAILERS IN NEW AWARDS
- FORD LAUNCHES USED CAR PLATFORM
- BMW TAKING CONTROL OF SALES
- STOCKWATCH – Halfords growth continues as half-year profits double, commits to recruit 1,500 EV technicians
- COMING UP – Cambria full year, Motorpoint interims
- RIGHTS ISSUE FINANCING LOOPHOLE ENDING SOON
- FCA ANNOUNCES NEW CREDIT SUPPORT GUIDANCE
Rybrook turnover up, profit down
Warwick’s Rybrook Holdings saw turnover increase from £749m to £811m in the year ended 31 December 2019. Profit before tax, however, declined from £1.9m to £1.2m. During the year, the business acquired Jaguar and Land Rover Stoke for £1.2m, selling the Jaguar operation in June for £0.3m. Overall, the JLR businesses contributed to an operating loss of £0.7m.
Rybrook made £5.2m of capital investment, including the fit out of Huddersfield Jaguar Land Rover on behalf of the new landlord, resulting in an operating profit of £1.7m. It also began the fit out of Volvo Preston and the development of a central storage compound in Wolverhampton.
Covid-19 will have a “significant impact on the business in the near term” but the directors are encouraged by trading since the first lockdown lifted.
Eastern Western profit up 15%
Eastern Western Motor Group Ltd grew profit before tax by 15% from £7.28m to £8.45m in the year ended 31 December 2019. Turnover was up 10%, from £699m to £770m. The Broxburn, West Lothian retailer’s directors were “very satisfied” with the performance in a Scottish market that declined 5.5%. Like-for-like new car sales grew 11%, used car sales grew 6% and aftersales turnover was up 10%.
Snows maintains profit in 2019
Snows Business Holdings Ltd has reported profit before tax of £2m for the year ended 31 December 2019, matching 2018’s return. Turnover at the Hampshire group increased from £355m to £414m, resulting in a decline in return on sales from 0.6% to 0.5% During the year, the business acquired the freehold for its Newbury Peugeot and Kia site with funding from BMW Financial Services. Two further non-statutory directors were also appointed, for HR and Finance and Insurance.
Carwow honours retailers in new awards
The first Carwow retailer and leasing broker awards saw seven companies honoured across both categories. Peter Cooper of Volkswagen Chichester won the Outstanding Contribution Award, Toyota Milton Keynes won the Electric Vehicle Specialist Award, and retailers from Carwow’s 35 OEMs were individually honoured in the Retail Customer Experience Award: the full list of winners is listed on its website.
WORLD NEWS
Ford launches used car platform
Ford aims to help US retailers boost used car sales with the launch of a new brand and online sales platform called Ford Blue Advantage in early 2021. “We believe from day one it will be the largest source of used Fords by far,” said marketing, sales and service director Mark LaNeve. Used inventory from all 3,100 Ford retailers will be linked, and guaranteed pricing and delivery will be offered.
BMW taking control of sales
BMW has competed a successful direct retail sales pilot in South Africa and is now considering taking the strategy to other markets. The digital strategy sees customers dealing directly with BMW on pricing, purchasing and invoicing. Outgoing MD Tim Abbott said retailers become consultants, “like an Apple store concept”, with BMW directly responsible for the sale. Retailers took a lot of convincing, admits Mr Abbott, but “not one of the retailers want to go back… to the old wholesale model – they love it”.
STOCKWATCH
Closing prices on 20 November 2020 and weekly change
Halfords growth continues as half-year profits double, commits to recruit 1,500 EV technicians
Auto Trader Group 554.6p (-8.0p / -1.4%)
Cambria 56.5p (-1.5p / -2.6%)
Caffyns 295.0p (+25.0p / +8.8%)
Halfords 259.5p (+17.5p / +6.9%)
Inchcape 623.0p (+5.5p / +0.9%)
Lookers Shares suspended at 21.0p
Marshall Motor Holdings 136.5p (n/c)
Motorpoint 294.0p (-6.0p / -2.0%)
Pendragon 13.36p (-0.34p / -2.5%)
Vertu 33.0p (+3.0p / +9.5%)
COMING UP
Wednesday, Cambria full-year results
Thursday, Motorpoint interims
Friday, UK consumer credit
MONEY MATTERS
Rights issue financing loophole ending soon
The FCA will end ‘light-touch’ rules allowing quoted businesses to bypass shareholders and quickly raise cash on 30 November. Companies have been allowed to raise up to 20% of their share capital by placing stock with select investors rather than offering all shareholders equal access through time-consuming measures such as rights issues. The closure of the so-called emergency funding window will see the existing 10% share capital limit restored.
FCA announces new credit support guidance
New guidance from the FCA comes into force on 25 November to help credit customers impacted by coronavirus. Customers who have not yet had a payment deferral will be eligible for up to six months of payment ‘freezes’ or ‘holidays’. Existing deferral applicants can apply for a further deferral so long as it does not exceed a total of six months.
Customers have until 31 March 2021 to apply for deferrals.
Tags:
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
