F&I Management & Training

A new report shows that confidence in the UK economy’s prospects among small and mid-cap companies has stalled, sinking back to levels last seen in September 2011.

The QCA/BDO Small & Mid-Cap Sentiment Index – conducted by YouGov on behalf of accountants BDO and the independent membership organisation the Quoted Companies Alliance (QCA) – used a 0-100 scale where zero is ‘very pessimistic’ and 100 is ‘very optimistic’.

Its latest figures show that confidence dropped from 47.3 in April 2012 to 38.4 in June 2012.

A striking 83% believe the equity markets are either having no impact or are actually hindering their development. The biggest problem, cited by 62% of companies, was a lack of liquidity. 69% want to raise the amount of share capital they can issue without having to provide a prospectus.

Partner at BDO, Scott Knight, commented: “We have re-entered recession and the instability in the eurozone is ongoing, so a confidence blip is to be expected. But there is a level of malaise regarding the equity markets and liquidity that is a cause for concern.”
 

DATED: 24.07.12

FEED: AM

Vertu Motors, owner of Bristol Street Motors, has reported a strong start to its financial year with like-for-like vehicle revenues growing by 5.1% in the four months to June 30.

The group told shareholders at its AGM that it has traded ahead of the prior year with like-for-like profit growth in each of the key areas of the business.

But chairman, Paul Williams, warned that pre-registration activity was starting to distort the market. He added that the Vertu Motors board believes there is an increasing trend for self-registered vehicles to be classified as private, rather than fleet, registrations within the market.

“The market is witnessing increased levels of self-registration by UK dealers which is inflating registration data compared to sales levels,” he said. “The group (Vertu Motors) continues to follow a policy of not engaging in significant self-registration activity.”

This trend is reflected in the Vertu Motors new car sales figures where retail volumes grew on a like-for-like basis in the past four months by 0.3% against an increase in UK private registrations of 10.1%.

However, like-for-like new retail car profitability rose 4.7% in the period and new retail car like-for-like margins increased to 7.9% (2011: 7.3%).

The group has seen considerable growth in fleet and commercial volumes with a like-for-like increase of 12.2% in the four month period compared to a market decline in registrations of 0.8%.

Used vehicle sales volumes rose on a like-for-like basis 6.7% in the four month period compared to the prior year.

Like-for-like aftersales margins were slightly lower at 42.8% (2011: 43.9%). Mr Williams said this is a result of the group’s strategy to increase service retention for used car customers, particularly in the over four year old vehicle category.

Vertu has continued to add new dealerships. In May it introduced Ford commercial vehicle sales and aftersales to the Bristol Street Commercials site in Swindon and in June it bought two Ford dealerships in Durham and Hartlepool from Holiways.

It has also bought the trade and assets of a Suzuki dealership in Mansfield from the Co-op Group. The dealership is situated in a freehold property adjacent to Vertu’s existing Honda site and is the first Suzuki dealership in the group’s portfolio.

DATED: 24.07.12

FEED: ARN