Auto Retail Agenda: 29 April 2024
28 April 2024
- PETER VOSPER LEADS NFDA AWARD WINNERS
- MOBILIZE TO BECOME RENAULT’S FIFTH BRAND
- JOE DUFFY UPS STAKE IN VERTU
- COX FORECASTS OVER 2m NEW CAR SALES IN 2024
- SWANSWAY TURNOVER NEARS £1bn IN PROFITABLE 2023
- LITHIA PROFITS DOWN AND FOCUS SHIFTS FROM ACQUISITIONS
- VINFAST SIGNS MORE US RETAILERS
- STOCKWATCH
- COMING UP: UK consumer credit
- FTSE 100 SHRINKING AT RECORD PACE
- CHANCELLOR CALLS SUMMIT TO BOOST STOCK MARKET
Peter Vosper leads NFDA award winners
Peter Vosper received the NFDA Chairman’s Award at the 2024 Spring Ball last weekend, in recognition of his exceptional leadership, dedication and unwavering support for NFDA initiatives. The Vospers chairman was presented with the award by NFDA chairman David Newman.
Terence Donnelly, who was recently awarded an OBE by Princess Anne, received the Industry Personality of the Year in recognition of his pivotal role in establishing NFDA NI. Donnelly Group is Northern Ireland’s largest family-owned auto retailer.
Soper of Lincoln won the Green Dealer Award for under 10 sites, with head of business Bryan Sleaford receiving the award. Vertu Motors won the award for retailers over 10 sites, with chairman Andy Goss collecting the award.
Kia UK was Manufacturer Partner of the Year for its ongoing NFDA DAS success, BYD was Green Manufacturer of the Year and Metryx was Industry Partner of the Year.
The guest speaker was World Cup-winning All Blacks captain Sean Fitzpatrick, and the event at the Grove in Watford, opened by NFDA chair Sue Robinson, was once again hosted by the inimitable Mark Durden-Smith. Almost £3000 was raised during the evening for industry charity Ben.
Mobilize to become Renault’s fifth brand
Renault retailers can expect to add a fifth brand to their showrooms from next year with the launch of Mobilize. Mobilize is the French firm’s finance house, but is also the division that will sell the Twizy replacement called Duo, and commercial vehicle version called Bento.
Mobilize will sit alongside Renault, Dacia, Pro+ and Alpine in the overall Renault Group portfolio.
UK management has yet to decide if the Mobilize will be offered by all Renault retailers, or offered as a bolt-on, additional franchise to a limited number of sites.
When the car was originally unveiled at the end of 2022, Renault said it would only offer the Duo and Bento through a subscription or lease with no outright purchase available. However, this line has now softened, with Renault saying this aspect is still being considered for the UK.
Speaking to Auto Retail Agenda at the CV Show, Zakaria Zeghari, VP global sales and marketing LCV, said the small electric Duo and Bento would be on sale “in the next few months”. He added: “It’ll be sold through the Renault network under the brand of Mobilize.
”In terms of volume, the new brand is only expected to add one or two thousand units per year.
Joe Duffy ups stake in Vertu
Joe Duffy Motors CEO Gavin Hydes has upped his stake in Vertu from 3.3% to 4.1%. The investment was via an Irish company called Nivag Holdings, wholly owned by Hydes. Joe Duffy Motors is also controlled via Nivag.
Hydes initially passed the 3% ownership threshold, a point at which investors must notify the stock market, last November.
Cox forecasts over 2m new car sales in 2024
Cox Automotive has revised upwards its baseline forecast for new car sales in 2024. It projects registrations will surpass two million cars, with a potential upside scenario stretching it beyond 2.2m. The rethink depends on a more robust H2 market performance – along with the imperative for OEMs to gain market share while meeting ZEV Mandate obligations.
The figures are part of Cox Automotive’s latest Insight Quarterly (IQ), which is released today.
Swansway turnover nears £1bn in profitable 2023
North-west retailer Swansway reported a pre-tax profit of £13.4m for 2023. Turnover grew 24% to £941m. “We are on a strong financial footing with £68m of net assets, and we are poised at short notice to make the most of any opportunities that present themselves whilst the industry consolidates,” said director Peter Smyth.
WORLD NEWS
Lithia profits down and focus shifts from acquisitions
US retailer Lithia, which owns Pendragon in the UK, saw net income fall 28% in Q1. The company posted record revenue but expenses rose and gross profit per vehicle fell. Shares slipped 5% on the news.
“In the first quarter, our teams responded as the industry continued to normalise inventories and profitability,” said CEO Bryan DeBoer. “Responding to market conditions, we are rebalancing our capital allocation from acquisitions toward returns to our shareholders.”
Last week, Pendragon announced plans to close the CarStore business in the UK, with the loss of around 250 jobs.
VinFast signs more US retailers
New entrant VinFast has signed a further 12 retailers in the US. They will open from April 2024. There are now 18 VinFast retailers in the US, across seven states. The expansion follows the company’s transition from a direct-to-consumer model to a “capital-light hybrid model with a strong focus on leveraging existing distribution infrastructure by building dealership networks in the US and globally”.
STOCKWATCH
Closing prices on 26 April 2024 and weekly change
Pinewood will pay a special dividend to shareholders of 24.5p per share on 7 May. Last week, a capital reorganisation, where 1 new Ordinary Share of 100p was issued for every 20 existing Ordinary Shares of 5p, was completed
Auto Trader Group 695.4p (+26.8p / +3.9%)
Caffyns 525.0p (+25.0p / +4.8%)
Halfords 151.4p (+3.8p / +2.5%)
Inchcape 794.5p (+68.5p / +9.0%)
Motorpoint 140.0p (+2.0p / +1.4%)
Pinewood 319.0p (n/a)
Vertu 69.2p (+4.3p / +6.4%)
COMING UP
Tuesday, UK consumer credit
Wednesday, BRC shop price index
15 May, Radius Law Annual Conference
MONEY MATTERS
FTSE 100 shrinking at record pace
The UK stock market is shrinking at its fastest pace in history amid a wave of foreign takeovers – which have also pushed the FTSE 100 to its best week in eight months. The fresh dealmaking means £100bn of market value is set to leave the exchange through takeovers and delistings this year, says Peel Hunt.
If this pace continues, the domestically-focused FTSE 250 could be extinct by 2030. “We’re living in a global world and it’s either be the hunter or be hunted, and we are definitely being hunted,” said analyst Charles Hall.
Chancellor calls summit to boost stock market
Jeremy Hunt has invited bosses of some of the UK’s most prominent companies to a meeting on 16 May at Dorneywood, his weekend country residence. The day-long event will investigate how to entice more companies to the London stock market. Dozens of firms, including digital banks Monzo and Starling Bank, are understood to have been invited.
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