Auto Retail Agenda: 24 August 2020
23 August 2020
- GREENHOUS 2019 PROFIT HALVES
- CLIVE BROOK VOLVO EXPANSION PLANS
- MSP DEBATES FROM HONDA RETAILER
- GAMBLING ADDICT JAILED FOR DICK LOVETT THEFT
- WORLD NEWS – New CEO for AutoAlert, Bilia acquisitions
- STOCKWATCH – Vertu up on record July profit
- COMING UP – Motorpoint AGM
- MONEY MATTERS – Retail sales fully recover, HMRC CJRS compliance checks begin
- BLOG: Don’t let high demand be an excuse for slipping standards
- AND FINALLY… Former fire station (and MG showroom) for sale
Greenhous 2019 profit halves
Telford’s Greenhous has reported a £310k pre-tax profit for the year ended 31 December 2019, down from 2018’s £528k profit (a 52% decline). The total represents an operating margin of 0.31%, compared to 0.33% in 2018.
Following Ford of Britain’s retailer restructuring announcement, Greenhous decided to close its lossmaking Newtown site in November 2019, which it purchased from WR Davies in 2015. However, the directors said the purchase of a more viable operation on the Isle of Wight (Premier Ford) will allow the business to continue supplying Ford vehicles to fleet customers.
The closure costs and trading losses of Newtown “had a significant impact on the overall result” for 2019. Losing the loss-making operation, and the continued growth of Greenhous’ fleet operation, “will guarantee improvement in the future profitability of the company”.
During 2019, Greenhous net borrowings grew from £5.8m in 2019 to £23.4m in 2019, while turnover fell from £390m to £346m.
Clive Brook Volvo expansion plans
Bradford’s Clive Brook Volvo has purchased an additional site on its busy Canal Road location and has now submitted a planning application to build a new workshop and showroom. Mr Brook says the plans are intended to “take pressure off the existing site”, which will remain the customer workshop location. The new development will have space for 33 cars.
MSP debates from Honda retailer
MSP Stewart Stevenson took part in a Holyrood coronavirus meeting from Ewans Honda of Cornhill after his broadband connection at home was brought down by storms. Mr Stevenson took over a salesperson’s desk in the corner of the showroom for the Zoom debate – next to a Honda logo and new Honda Jazz.
Gambling addict jailed for Dick Lovett theft
A gambling addict used a car jack to break open a fence at Dick Lovett Land Rover Melksham and steal parts including headlights, tow bars and grilles. The dealer principal said that although parts had been recovered, it wasn’t possible to match them with the vehicles from which they were taken. The retailer has been left with a £7,000 repair bill and increased insurance premiums. As some of the vehicles were customer cars, relationships with clients had also been affected.
Thief Ian Lawson was sentenced to 19 months’ imprisonment.
WORLD NEWS
New CEO for AutoAlert
Former AutoNation SVP Allan Stejskal has replaced Mike Dullea as CEO of customer experience management company AutoAlert. In confirming the announcement, chairman Steve Young said the board “see this as a vibrant and growing market”. AutoAlert “has momentum I am excited to build upon,” said Mr Stejskal. Mr Dullea will remain a board member.
Bilia acquisitions
Swedish retailer Bilia AB, one of Europe’s largest chains, has purchased a vehicle dismantler and used car part retailer called Jonkopings Bildemontering AB, and Ecris AB, which sells new and refurbished car parts. It has also purchased the real estate company which owns the property in which the two businesses operate. The businesses, which have an operating margin of around 15%, sold for just under £17.5m. The deal is expected to complete in November.
STOCKWATCH
Closing prices on 21 August 2020 and weekly change
Vertu up on record July profit
Auto Trader Group 556.2p (+0.4p / +0.07%)
Cambria 51.0p (+4.0p / +8.1%)
Caffyns 270.0p (n/c)
Halfords 165.2p (+1.4p / +0.8%)
Inchcape 491.2p (+2.6p / +0.5%)
Lookers Shares suspended at 21.0p
Marshall Motor Holdings 127.5p (+5.0p / +4.0%)
Motorpoint 271.0p (n/c)
Pendragon 8.5p (+0.5p / +6.0%)
Vertu 25.2p (+4.1p / +17.7%)
COMING UP
Monday, Motorpoint AGM
Friday, Nationwide house price index
MONEY MATTERS
Retail sales fully recover
High street retail sales recovered to above pre-pandemic levels in July. Volumes rose 3.6%, following double-digit rises in May and July – and a record 18.1% fall in April. Economists said the figures were unexpectedly strong and reflect pent-up demand after lockdown restrictions eased.
HMRC begins CJRS compliance checks
HMRC has written to 3,000 employers who may need to repay their Coronavirus Job Retention Scheme (CJRS) grants. It comes as HRMC begins the next phase of its compliance activity. Letters are being sent to employers who may have claimed more CJRS grant than they are entitled to, and those who may not meet the conditions of the grant. If overpaid grants are repaid within a defined time limit, employers will not be charged a penalty.
BLOG: Don’t let high demand be an excuse for slipping standards
Former fire station (and MG showroom) for sale
A 117-year-old former fire station recently used by TL Darby MG is up for auction. The guide price is £795k. Brigade House on New Street, Burton was built in 1903 and used as a fire station until 1973. The site includes a showroom, four sales offices, a board room and workshop.
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