Auto Retail Agenda: 9 May 2023
08 May 2023
- JOHN GROSE PROFIT UP – DESPITE STELLANTIS ‘FRUSTRATION’
- VAN MOSSEL BEGINS EU EXPANSION
- ALEX CHESTERMAN NET WORTH REVEALED
- BANK HOLIDAY 2023 ENTITLEMENT EXPLAINED
- CARVANA CUTS LOSS; SHARES SURGE
- BYD APRIL DELIVERIES DOUBLE
- STOCKWATCH
- COMING UP: BoE interest rate decision
- 5% UK INTEREST RATE FORECAST
- BUFFETT: PUNISH FAILED US BANK BOSSES
John Grose profit up – despite Stellantis ‘frustration’
John Grose Group saw profit before tax for the year ended December 2 rise from £6.2m to a record £8.3m. Turnover grew from £158m to £187m.
The Suffolk retailer used its strategic report to criticise Stellantis. During the year, Stellantis consolidated many of its IT platforms and rationalised supply chains, “all of which was a major source of frustration to the franchised networks.
“This is likely why Stellantis brands did not fare well in the 2022 UK dealer attitude survey, along with market share pressures and poor dealer profitability.”
However, John Grose said it welcomed Ford’s planned move to an agency model and rationalisation of its network. The changes “are not seen as a risk to the business”.
The retailer revealed its closed defined benefit pension scheme is 136% funded on a section 179 basis, with a surplus of over £2m.
Van Mossel begins EU expansion
The Netherlands’ Van Mossel Automotive Group has acquired Germany’s Hugo Pfohe in its first major expansion outside the Benelux region. Hugo Pfohe is one of north Germany’s largest retail groups, with seven brands and a €300m (£261m) turnover.
Van Mossel CEO Eric Berkhof said the acquisition “fits perfectly into our European growth strategy”.
The retail group is the largest in the Netherlands. It has a turnover of €4.5bn and has almost 350 branches in the Netherlands, Belgium, Germany, France and Luxemburg.
Alex Chesterman net worth revealed
Cazoo founder Alex Chesterman is worth almost half a billion pounds. His wealth of £489m is up 6.2% year to date and he ranks 27th on the Evening Standard Tech Rich List.
Bank holiday 2023 entitlement explained
Given the number of extra bank holidays in recent years, Motor Industry Legal Services is advising retailers to check their employee contracts. Full time employees are entitled to 28 days’ holiday a year – but there is no differentiation between bank holidays and other days. Contracts should clearly state whether bank holidays or inclusive or not. If contracts are unclear, retailers should remain consistent with previous practice.
There are normally eight bank holidays a year in England and Wales, nine in Scotland and 10 in Northern Ireland.
WORLD NEWS
Carvana cuts loss; shares surge
Carvana reported a net loss of $286m (£226m) in Q1, smaller than its $506m (£400m) loss a year earlier. Its adjusted EBITDA loss of $24m (£18m) was significantly smaller than its $348m (£275m) 2022 loss.
Revenue fell 25% to $2.6bn (£2.0bn), and sales fell 25% to 79k vehicles. CEO Ernie Garcia is forecasting a positive adjusted EBITDA in Q2.Shares surged 34% on the news.
BYD April deliveries double
China’s BYD reported a 98% spike in sales during April, to 210,295 vehicles. In the first four months of 2023, sales are up 94%, to 762k vehicles. BYD, which is already the world’s largest EV maker, is targeting 60% sales growth to 3 million vehicles in 2023.
STOCKWATCH
Closing prices on 5 May 2023 and weekly change
Auto Trader Group 643.0p (+7.4p / +1.5%)
Caffyns 550.0p (n/c)
Halfords 205.0p (-5.2p / -2.5%)
Inchcape 787.0p (-21.5p / -2.6%)
Lookers 86.0p (-0.6p / -0.6%)
Motorpoint 135.0p (n/c)
Pendragon 17.62p (n/c)
Vertu 55.7p (-2.0p / -3.5%)
COMING UP
Wednesday, Vertu full year
Thursday, BoE interest rate decision
Friday, GDP
MONEY MATTERS
5% UK interest rate forecast
Goldman Sachs says the Bank of England could be forced to raise interest rates to 5% this summer to bring down stubborn rates of inflation. UK inflation is the highest in the G7, with rates their highest in 40 years.
The US investment bank warned households and businesses could face further increases in the cost of borrowing as a result.
Buffett: punish failed US bank bosses
US executives who led failed banks should face punishment, says billionaire investor Warren Buffett. He said he remains cautious about holding bank stocks and has reduced his exposure to the sector.
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