28 July 2019

• VERTU SHAREHOLDERS REBEL OVER PAY
• WLTP SERVICING BOOST EXPECTED
• AVAILABLE CAR CAUTIOUS FOR 2019
• SIR MICHAEL MARSHALL DIES AGE 87
• CALIFORNIA OVERRULES TRUMP ON EMISSIONS
• STOCKWATCH – Inchcape pleases market in H1
• LAUNCH DIARY – Renault Clio, Audi Q7, Audi Q3 Sportback, Vauxhall Astra
• COMING UP – BCA sale finalisation expected
• NEW ONLINE PAYMENT REGULATIONS
• BOE ECONOMIST CAUTIOUS ON RATE CUT
• ECB RATE CUT HINT
• BLOG – Consumer risk and the PCP

Vertu shareholders rebel over pay

Shareholders used Vertu’s AGM votes last week to fire a warning shot over the board’s pay packets and long term incentive plan.

While all resolutions were passed at Vertu Motors’ AGM on Wednesday, a subset of shareholders holding 20.66% of voting went against the remuneration report and a 24.35% of the voting went against an amendment to the long term incentive plan.

In a statement Vertu Motors said: “The Company proposes to seek feedback from shareholders who voted against resolutions 10 and 15 [remuneration and LTIP] to enable it to consider if there is any action that is appropriate for it to take.”

The Vertu AGM also saw a 17.4% vote against the re-election of non-exec director Ken Lever, a 15.7% vote against the re-election of outgoing chairman Peter Jones and a 15.4% vote against the election of incoming chairman Andy Goss.

WLTP gives retailers servicing boost

Stricter emissions standards under WLTP regulations mean some manufacturers have had to shorted service intervals in order to make sure their vehicles are compliant. The changes could mean increased servicing business for retailers.

The change in service lengths, which impacts diesel engines across many brands, was first highlighted by Fleet Assist, which provides leading contract hire and leasing companies and rental organisations with a network of more than 5,000 franchise and independent service outlets.

Brands known to have shortened service intervals or added an oil change include Ford, BMW, Mini, Renault, Mercedes and Nissan. While many brands use variable service intervals some of these have had their upper limit lowered.

Available Car cautious on 2019

Reporting its 2018 full year figures, the parent firm to used car supermarket giant Available Car revealed a hike in pre-tax profits to £10.8 million up from £8.7m in 2017 and a turnover increase of 16% to £421m. Director Graham Bell, however, added that trading during 2019 was expected to be “more volatile” although revenues were expected to increase.

Graham Bell and Alison Bell also own Fords of Winsford.

Sir Michael Marshall dies aged 87

Sir Michael Marshall CBE has died while on holiday in Spain. Sir Michael, grandson of Marshall Motor Group founder David Marshall, was a chairman of the business.

Commenting on Sir Michael’s passing, CEO of Marshalls, Daksh Gupta said: “Sir Michael was instrumental in recruiting me in 2008. I had the privilege of working with Sir Michael for eight years on his board prior to the IPO of Motors in 2015. He was a true gent. He gave me the backing and support to grow our business into what it is today. I am truly gutted.”

A statement issued by Marshall of Cambridge said: “Sir Michael died on Saturday evening, while on holiday in Spain with his wife, Sibyl, and friends. While it is too soon to confirm any arrangements, it is anticipated there will be a small, private funeral followed by a memorial service later in the year, details of which will be announced when they have been fixed.”

WORLD NEWS

California overrules Trump on emissions

California has agreed with carmakers to enforce stricter Obama-era emissions standards despite an attempt by the Trump administration to strip the state of its right to set its own rules.

https://bbc.in/30ZKOXo

STOCKWATCH

Closing prices on 26 July 2019 and weekly movement

Market pleased with Inchcape H1 2019 results after poor performance last year.

Auto Trader Group 535.0p (-9.6p)

BCA 241.8 (-1.8p)

Cambria 57.5p (n/c)

Caffyns 410.0p (n/c)

Inchcape 626.5p(+24.5p)

Lookers 45.2p (-0.3p)

Marshall Motor Holdings 139.0p (n/c)

Motorpoint 210.0p (-8.0p)

Pendragon 13.3p (-0.7p)

Vertu 36.3p (-1.5p)

LAUNCH DIARY

Renault Clio, new model, prices and on sale August, deliveries from October

Audi Q7, facelift, prices and on sale August

Audi Q3 Sportback, new model, prices and on sale August, deliveries autumn 2019

Vauxhall Astra, facelift, on sale September

COMING UP

Monday: Nationwide house price index

Monday: BCA expected to confirm sale to TDR

Wednesday: Halfords AGM

Wednesday: GFK consumer confidence figures

Thursday: Bank of England Interest Rate decision

August 7: Auto Retail Live: Q3 Briefing. Sign-up here

MONEY MATTERS

New online payment regulations

New payment security regulations are set to come into force in September which will require any business taking payment online will have to use additional security checks.

http://bit.ly/2OmSK3y

BoE economist cautious on rate cut

Bank of England chief economist Andy Haldane sought to push back against market bets the central bank’s next move will be an interest rate cut, saying he would resist lowering borrowing costs unless there was a sharp downturn, according to Reuters.

https://reut.rs/2OhHxRZ

ECB rate cut hint

The European Central Bank has hinted it could cut interest rates to tackle a slowdown in the Eurozone economy, according to a BBC report.

https://bbc.in/2Z9x0cu

OUR BLOG – PCPs and consumer risk

Tags: Available Car, BoE, ECB, emissions, Inchcape, Marshall Motor Group, Michael Marshall, online payment, PCPs, Vertu, WLTP