Auto Retail Agenda: 5 October 2020
04 October 2020
- GLYN HOPKIN PROFIT, TURNOVER UP
- EASTERN WESTERN MOTOR GROUP IN £11.9M PROFIT
- HALFORDS TO RECRUIT MORE TECHNICIANS
- MAZEPOINT LAUNCHES MAZEINSIGHT INTELLIGENCE
- JEMCA TOYOTA CAR WASH ‘MAKING LIVES HELL’
- MG EXPANDS IN EUROPE
- MORGAN AUTO GROUP EXPANDS
- STOCKWATCH – Halfords up nearly 25% on impressive H1 performance
- COMING UP – Motorpoint trading update
- BCA OWNERS BUY ASDA
- FCA ISSUES NEW CORONAVIRUS SUPPORT GUIDANCE
Glyn Hopkin profit, turnover up
Glyn Hopkin has reported a £3.1m profit before tax as turnover increased 5.7% to £453m for the year ended 31 December 2019. The directors said this was particularly impressive given lower supply from its major manufacturer partners Nissan and FCA; this was negated by taking a larger share of the brands’ national sales volumes.
Glyn Hopkin expanded with MG, opening three further sites after the success of its first in 2018, and opened its first Kia retailer in December 2019. It also dualled FCA at Romford with Nissan, Mitsubishi at Chelmsford, and MG at St Albans, Cambridge and Milton Keynes.
A non-board marketing director, Sonia Hobbs, was appointed, which the directors said was a key role given the need to develop a credible e-commerce strategy. Operations director Stuart Hodson also left the group after 26 years.
Eastern Western Motor Group in £11.9m profit
Scotland’s Eastern Western Motor Group recorded an £11.9m profit before tax for the year ended 31 December 2019 on turnover up 10% from £699m to £770m. The multi-franchise retailer said like-for-line new car sales were up 11% in a Scottish market down 5.4%, with used cars up 6% and aftersales up 10%.
However, Covid-19 has had a material impact in early 2020 with significant losses incurred. The pandemic “exposed a weakness in the online capabilities of many car retailers… although the Group has the skills and resources to develop its own online model, it is felt the adoption of manufacturer solutions would provide better ‘brand experiences’.” It is now working on an interim solution.
Halfords to recruit more technicians
Halfords has launched a nationwide campaign to recruit “hundreds of skilled technicians” due to substantial growth in its retail and Autocentres businesses. The company last week revealed H1 profit before tax is expected to be in excess of £55m. Motoring products and services contributed to the growth, including “exceptional demand for our growing Mobile Expert proposition”.
Mazepoint launches Mazeinsight intelligence
Mazepoint has launched the full version of its unique new end-to-end business intelligence platform, Mazeinsight. It gives managers quick and easy access to their performance via a personalised, KPI-focused dashboard so they can quickly spot opportunities.
Several retailers have already been using Mazeinsight. “Mazepoint has added real value,” said Perrys’ group financial controller Chris Thexton. The insights are “putting money back on the bottom line of our business,” said Sinclair Group head of finance Leanne Smith.
“Data is a crucial asset at this critical time for the industry,” said Mazepoint commercial director Tracy Ellam. “Successful business leaders have proven it’s vital to have accurate, real-time performance data at your fingertips.”
Jemca Toyota car wash ‘making lives hell’
Noise from a car wash at Jemca Toyota Bracknell is causing local residents ‘torture’. The facility was built two years ago and, in July, Jemca was told it breached planning rules. The retailer has since applied for retrospective planning permission. Binfield Parish Council and 11 residents have lodged complaints to Bracknell Forest Council.
WORLD NEWS
MG expands in Europe
MG Motor is advertising for senior positions in Germany, Spain and Italy as part of its European expansion. Last year, it began sales in France, the Netherlands and Norway, and is also working with retailer groups in Belgium, Austria and Luxembourg. European sales are up 76% year to date.
Morgan Auto Group expands
Morgan Auto Group, one of North America’s largest privately held retailer groups, has added BMW Wesley Chapel as part of its expansion in Florida. It has already started work on a new 130,000 square foot facility that the retailer will move into in 2021. The BMW retailer is its fourth Wesley Chapel, Pasco County store.
STOCKWATCH
Closing prices on 2 October 2020 and weekly change
Halfords up nearly 25% on impressive H1 performance
Auto Trader Group 575.0p (+21.6p / +3.8%)
Cambria 48.0p (-2.0p / -4.0%)
Caffyns 270.0p (n/c)
Halfords 237.0p (+52.4p / +24.8%)
Inchcape 453.6p (+25.0p / +5.6%)
Lookers Shares suspended at 21.0p
Marshall Motor Holdings 127.5p 125.0p (-2.5p / -1.9%)
Motorpoint 303.0p (+32.0p / +11.1%)
Pendragon 7.9p (+0.6p / +7.8%)
Vertu 26.1p (+0.5p / +1.9%)
COMING UP
Tuesday, UK retail sales
Wednesday, Halifax house price index
Thursday, Motorpoint trading update
MONEY MATTERS
BCA owners buy Asda
TDR Capital, which bought BCA Marketplace in November 2019, has agreed to buy supermarket giant Asda from US company Walmart. The £6.8bn deal is expected to complete in early 2021. TDR Capital is owned by British brothers Mohsin and Zubar Issa, and also owns Leaseplan and Euro Garages, while BCA sub-brands include We Buy Any Car and Cinch.
FCA issues new coronavirus support guidance
New guidance from the FCA has come into force to support consumers facing payment difficulties due to coronavirus. This includes those already benefitting from support and customers whose financial situation may be newly affected by coronavirus when the current guidance ends on 31 October.
“We expect firms to offer a tailored package of support” said FCA interim chief executive Christopher Woolard. “There should be no ‘one size fits all’ approach.” Mr Woolard added that for those who can restart payments, it is in their best interests to do so.
Tags:
BCA, Eastern Western, FCA, Glyn Hopkin, Halfords., jemca, Mazeinsight, Mazepoint, MG, Morgan Auto Group, Motorpoint 
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