F&I Management & Training

The Bank of England has held UK interest rates at a record low of 0.5% for another month. The size of the Bank's economic stimulus programme - quantitative easing - was also unchanged at £375bn. Debate over the timing of a rate rise has intensified, with Bank governor Mark Carney hinting recently that it could come by the end of this year.
http://bbc.in/1oiqUl7

ANOTHER JUMP IN HOUSE PRICES

UK house prices in July were up 10.2% from a year earlier, the biggest annual change since September 2007, according to the Halifax. The lender said that property prices grew by 3.6% in the three months to the end of July compared with the previous quarter.
http://bbc.in/1ovSuFq

PENDRAGON READY TO START EXPANDING

Pendragon has continued to grow revenue and profit in the first six months of the year and says it is now ready to start expanding again.

The group saw underlying operating profit increased by £7.8 million in the period, an increase of 19.4% on the prior year. Net debt has been reduced to £105.7m, which is under the group’s target range for its debt to underlying earnings ratio.
http://bit.ly/1lvdDje

Coming up

On Wednesday, Lookers will present investors with its half-year financial results to the end of June and update investors on any board changes since the departure of Peter Jones. The group has previously said it has had a strong start to the year and results should be ahead of the prior period.

Also on Wednesday, the latest employment market statistics will be made available by the Office for National Statistics. Last month UK unemployment fell by 121,000 to 2.12 million in the three months to May. The figure is the lowest level in nearly six years.

On Thursday, leading service plan provider EMaC is celebrating its 10^th anniversary with an evening event for staff and friends near its headquarters in Crewe. The company has grown to be the best established provider in the industry.

DATED: 11.08.2014

FEED: ARN

Despite latest figures showing car sales continue to fly high, market-watchers now predict that an end to the boom will arrive soon.

Max Warburton, an analyst at Bernstein Research, told ft.com on Sunday that although the British are: “addicted to buying cars… …trend analysis suggests that future market growth is likely to be limited.”

He and other experts believe that the market risks becoming saturated. The SMMT has just increased its year-end predictions for new car sales to 2.45m but its chief executive, Mike Hawes said demand is beginning to "stabilise".

Factors behind the change include a likely increase in interest rates. Meanwhile, improving sales in mainland Europe mean French, German and Italian car makers are less inclined to drive UK sales by offering highly attractive discounts and finance deals.

DATED: 11.08.2014

FEED: ARN

Honda’s UK boss has admitted that the four years in which the company cut research and development budgets has left sales “not being in the game”.

Managing director Philip Crossman said the company’s approach to the downturn was to stay profitable, without damaging markets or shareholders.

In an interview with the Sunday Times, he said: “So we’ve had a product hiatus, I would think, for four years. If you’ve got an FR-V, it’s difficult to come back to us for a new car of that type. And we haven’t had a Type-R, so where are you going to go for your sports car?

However, R&D investment is now back and is around $5bn, making it among the largest. The company plans four new models and two new engines by next summer. Among these will be a new version of the NSX supercar. While its UK sales will be tiny – Mr Crossman expects to shift just 20 next year – it will have a big effect on brand image.

DATED: 11.08.2014

FEED: ARN

Marshall Motor Group has bought its first BMW and Mini dealerships with the acquisition of Crystal Motor Group, owners of Astle BMW and Mini in Scunthorpe and Grimsby.

The private deal, for an undisclosed sum, means that Marshalls now represents each of the major German and British premium car brands and takes the annual turnover of the business to around £1.2bn. On completion of the deal, Marshall will have 75 franchised outlets and 2300 staff.

Alongside Astle, which has two BMW and one Mini outlet, Marshall is also acquiring the BMW Motorrad motorcycle dealership in Grimsby and three Nissan dealerships, trading as Crystal in Boston, Grantham and Lincoln. The Crystal businesses are also Renault authorised repairers.

Daksh Gupta, Marshall chief executive, said: “This is an historically important acquisition for Marshall which fits perfectly with our stated strategy to grow with the right brand partners in the right locations.

“We are incredibly proud to be partnering with BMW and Mini for the first time. We now have a truly balanced portfolio with important partnerships across the volume, alternate premium and premium sectors.”

The three new Nissan dealerships will form a natural market area with the existing Marshall Nissan outlets in Bury St Edmunds and Peterborough.

Crystal Motor Group was the largest privately owned motor group in Lincolnshire and majority owned by Mike Baldry, a former Alphabet and Dial Contracts veteran. He sold a 45% stake in the business to Camden Ventures when he was offered the opportunity to expand and buy Astle BMW in 2008.

Accounts to the end of 2103 showed Crystal Motor Group with a turnover of £32m and a pre-tax profit of almost £616,000. Assets were primarily stock, valued at just over £4m.

DATED 11.08.2014

FEED: ARN