Auto Retail Agenda: 30 September 2024
29 September 2024
- LOOKERS OWNER IN NEW $1.2bn EU DEAL
- PROFIT DOWN AT GLYN HOPKIN BUT UP AT JCB MEDWAY
- DfT FIGURES SHOW EV INTEREST AT FOUR-YEAR LOW
- AVAILABLE CAR LOSS SWELLS TO £10.8m
- VERTU DITCHES TIES
- STELLANTIS STARTS SEARCH FOR TAVARES SUCCESSOR
- STOCKWATCH
- COMING UP
- CHANCELLOR TO INTRODUCE FLAT 30% PENSION TAX RELIEF?
- LEGAL FIRM SLAMS VOTE AGAINST VIRTUAL AGMs
Lookers owner in new $1.2bn EU deal
Lookers owner, Global Auto Holdings, is reportedly nearing a deal to buy one of Denmark’s largest retail groups, KW Brunn Import for $1.2bn (£900m) including debt. The deal could be announced as soon as Friday.
Global Auto Holdings, owned by Kuldeep Billan, last year purchased Lookers for £504m. Billan also owns Canada’s Alpha Auto.
The new push into Europe would make Global Auto one of the largest importers and sellers in the Nordics. Family-owned KW Brunn has operated for more than a century and represents 11 brands, majoring on the Stellantis group.
An Auto Retail Agenda source knowledgeable of the deal confirmed the story.
Profit down at Glyn Hopkin but up at JCB Medway
Glyn Hopkin, in the year ended December 2023, saw profit before tax fall from £7.5m to £4.0m. Turnover grew from £520m to £560m. The directors said they were pleased with the result, as 2022 was an abnormal year both for the group and UK auto retail in general, due to demand outstripping supply.
They said the Nissan, Kia and MG brands all performed strongly, with Kia “continuing to be one of the most sought-after franchises in the UK”. However, Glyn Hopkin reevaluated its relationship with Stellantis in 2023, exiting the Fiat, Alfa Romeo and Jeep brands. Profitability had been declining and “in a number of cases were loss-making”.
JCB Medway reported an excellent year to December 2023. Profit before tax was up from £4.4m to £6.6m, and turnover grew from £228m to £256m, results the directors described as “excellent”.
They added that for used cars, 2023 was a year of two halves; the second half was dominated by the “disastrous situation with used BEVs, which plummeted in price, some by up to 30%”. Retail appetite for new BEVs also waned, with only 1 in 11 customers choosing an electric vehicle. “The UK is the only major European market with no incentives, but also the only one with mandated minimum targets for new ZEV registrations.”
DfT figures show EV interest at four-year low
Figures from the Department for Transport show interest in electric cars has slumped to a four-year low. Just 13% of drivers plan to buy an EV as their next vehicle. In contrast, interest in ICE cars has risen, with 37% saying they will buy a petrol car next, up from 31% in 2023. Interest in hybrids is also down, from 35% to 30%.
Available Car loss swells to £10.8m
Used car retailer Available Car saw loss before tax swell from £7.3m to £10.8m in the year ended December 2023. Turnover was flat at £334m. The directors described it as “another challenging year” due to used car supply, rising prices and difficult economic conditions.
A business review saw the Leeds and Cannock sites sold in October 2023, with the proceeds used to repay part of the outstanding loans. Even so, borrowing costs grew from £1.6m to £4.3m.
Vertu ditches ties
Vertu CEO Robert Forrester has announced ties are no longer part of the Vertu uniform. The move comes into force on 1 October.
“Time moves on,” said Forrester.
WORLD NEWS
Stellantis starts search for Tavares successor
Stellantis chairman John Elkann has started a search for CEO Carlos Tavares’ successor. His contract runs out in early 2026. Stellantis said it was “normal to initiate a search” and it was possible Tavares could stay after that. Pressure on Tavares is increasing and Elkann is reportedly increasingly dissatisfied with the situation in North America, where sales have been slowing. Earlier in September, frustrated retailers wrote a remarkable open letter to Tavares, accusing him of “short-term decision making”.
STOCKWATCH
Closing prices on 27 September 2024 and weekly change
Auto Trader Group 873.6p (-1.2p / -0.1%)
Caffyns 450.0p (n/c)
Halfords 153.4p (+3.4p / +2.2%)
Motorpoint 142.0p (-3.5p / -2.4%)
Pinewood 350.0p (-8.0p / -2.2%)
Vertu 60.2p (23.5p / -4.0%)
COMING UP
Monday, UK GDP
Wednesday, BRC shop price index
Tuesday 8 October, Auto Retail Live New Entrants 2024 webinar
MONEY MATTERS
Chancellor to introduce flat 30% pension tax relief?
Chancellor Rachel Reeves is understood to be reviewing plans to introduce a flat 30% rate of pension tax relief in her first Budget next month. It would be a boost to basic-rate taxpayers, but higher- and additional-rate taxpayers would lose out.
The IFS has urged Reeves not to adopt the “superficially appealing” policy and one expert said a flat rate system would be a “complex undertaking” that would “fundamentally alter” how tax relief is applied. Any changes could take years to implement.
Legal firm slams vote against virtual AGMs
The chairman of Gateley Legal has slammed absentee shareholders who voted against allowing virtual AGMs to take place. “None of the institutional shareholders who voted against this resolution have appeared in person at our AGM in the nine years that I have chaired the business,” said chairman Nigel Payne. Outlining many benefits of virtual AGMs, he added they “generally attract higher audiences”.
ISSN 3049-5725
Tags:
Available Car, Budget, DfT, EVs, Global Auto Holdings, Glyn Hopkin, JCB Medway, K.W. Brunn, Lookers, pensions, Stellantis, Vertu, ZEV Mandate 
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