Wednesday, December 23, 2009
Rates & VAT creates New Year challenge for auto
Deloitte anticipates that the automotive industry will wake up with a headache on New Years day as significant VAT changes, including the rate returning to 17.5% and the introduction of the new EU-wide VAT package, come into force.
To help clients implement the changes as smoothly as possible, Deloitte, the business advisory firm, has re-launched its VAT Hotline. The Hotline offers immediate general advice on any technical, practical and systems related questions on the 1 January 2010 VAT changes.
David Raistrick, indirect tax partner at Deloitte, comments: "In addition to the VAT rate returning to 17.5% after 13 months at 15%, 2010 also sees the introduction of the new EU-wide VAT Package. We anticipate an influx of queries from companies asking for clarification on how to adhere to the guidelines, and consequently we have doubled the number of staff manning the VAT hotline compared to the number we had on standby when the VAT rate decreased earlier in the year. Early indications show a significant number of calls have been received from a broad range of industry areas in addition to automotive.
"Not only will businesses have to contend with determining what VAT rate applies when sales span 1 January, they will also need to be prepared to overcome systems issues, such as reprogramming systems and completing VAT returns, and the practical issues including re-pricing sales tickets.
"Getting the wrong VAT rate on big ticket items such as motor vehicles could be costly to dealers or result in an unexpected cost to customers. Similarly, there is some confusion regarding leases that span the 1 January date."
The VAT Package includes changes to the rules that determine where a supply is made for VAT purposes - currently services are generally treated as being supplied in the country of the seller, from 1 January 2010 this change to the country of the customers for business to business transactions. Additionally, there will be a new requirement to file EC Sales Lists for services supplied to other EU countries and new rules simplifying the procedures for claiming back VAT incurred in other EU countries.
DATED: 23.12.09
FEED: GG
Labels: Delayed Drafts
Thursday, May 21, 2009
Black Horse confirms new Finance Team
Black Horse managing director Chris Sutton said the new team has been appointed following a selection process carried out with former Bank of Scotland Dealer Finance managing director George Grant.
• Tim Smith will lead the combined motor sales teams in the north.
• Paul McGill becomes head of motor, south role.
• Mike Griffiths, who expands his current responsibilities for Black Horse fleet and major groups, with the Bank of Scotland Dealer Finance Wholesale and Strategic Accounts businesses moving under his wing.
• Paul Brotherton takes over the combined business support operation
• Simon Cotton, who expands his current responsibilities for Bank of Scotland Dealer Finance products to include products, marketing and pricing for the combined business.
Sutton said: "I firmly believe that the success of the new organisation depends on selecting the best people and processes from both sides of the business, to offer dealers an enhanced package of experience and industry knowledge.
"I am confident we have the best team in place to deliver positive results, which will ensure that we are here to support the motor industry for many years to come."
DATED: 21.05.09
FEED: MT
Labels: Delayed Drafts
Thursday, April 30, 2009
Lookers still confident despite drop in profits
Lookers’ profits have taken a pummelling falling from £38.3 million to £10.2m according to the group’s preliminary results for the year ended December 31, 2008.
Despite the dip in profits, the dealer group’s revenues were up from £1.68 billion to £1.78bn.
Ken Surgenor, Lookers’ chief executive, said: “We continue to believe that 2009 will be challenging for the new car market.
"However, our diversified business model and market-leading aftersales offering, coupled with the actions we have taken across our franchise operations and the £12m of cost savings in the current financial year mean that we are well placed to weather the uncertain economic environment, take advantage of any opportunities which may arise and emerge from this downturn as a stronger and more efficient business."
Financial highlights
Revenue £1.78 billion (2007: £1.68 billion)
Adjusted profit from operations £33.9 million (2007: £40.0 million)
Profit from operations £10.2 million (2007: £38.3 million)
Adjusted profit before tax £14.0 million (2007: £24.5 million)
Loss before tax £14.9 million (2007: profit £23.0 million)
Adjusted earnings per share 5.34p (2007: 9.81p)
Loss per share 8.82p (2007: earnings 9.09p)
Discussions with existing finance providers to put in new facilities to April 2012 well advanced.
Operational highlights:
Despite the dip in profits, the dealer group’s revenues were up from £1.68 billion to £1.78bn.
Ken Surgenor, Lookers’ chief executive, said: “We continue to believe that 2009 will be challenging for the new car market.
"However, our diversified business model and market-leading aftersales offering, coupled with the actions we have taken across our franchise operations and the £12m of cost savings in the current financial year mean that we are well placed to weather the uncertain economic environment, take advantage of any opportunities which may arise and emerge from this downturn as a stronger and more efficient business."
Financial highlights
Revenue £1.78 billion (2007: £1.68 billion)
Adjusted profit from operations £33.9 million (2007: £40.0 million)
Profit from operations £10.2 million (2007: £38.3 million)
Adjusted profit before tax £14.0 million (2007: £24.5 million)
Loss before tax £14.9 million (2007: profit £23.0 million)
Adjusted earnings per share 5.34p (2007: 9.81p)
Loss per share 8.82p (2007: earnings 9.09p)
Discussions with existing finance providers to put in new facilities to April 2012 well advanced.
Operational highlights:
Resilient performance against difficult market backdrop
Strong performance from independent aftermarket parts division
Product ranges expanded
National infrastructure strengthened
Strategic review of franchise network completed
Exited 21 satellite and main market operations
Dual franchised a further seven businesses
Successful cost reduction programme generating annualised savings of approximately £12m
Group well positioned to trade through downturn
Strong first quarter performance in 2009.
DATED: 30.04.09
FEED: AM
Labels: Delayed Drafts
Thursday, April 09, 2009
Bank of England Keeps Rate at 0.5%
Bank of England Maintains Bank Rate at 0.5% and continues with £75 Billion Asset Purchase Programme.
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to continue with the programme, announced on 5 March, of asset purchases totalling £75 billion financed by the issuance of central bank reserves.
DATED: 09.04.09
FEED: BoE
Labels: Delayed Drafts
Tuesday, April 07, 2009
As one of the phenomenons of the crisis impacting our industry and that of the wider economic meltdown, the decision to cancel next year’s British International Motor Show was one of the least surpising or significant.
To have persisted with an event designed to showcase the achievements of the UK motor industry would have appeared a ghastly fraud with carmakers – like so many modern day emperors – counting while their Rome burned around them.
With so many problems besetting our industry the Society of Motor Manufacturers and Traders is to be commended for taking the decision to cancel.
It claims, after all, the industry is in “a state of emergency”. GM’s protracted crisis only exacerbates the situation.
To have persisted with an event designed to showcase the achievements of the UK motor industry would have appeared a ghastly fraud with carmakers – like so many modern day emperors – counting while their Rome burned around them.
With so many problems besetting our industry the Society of Motor Manufacturers and Traders is to be commended for taking the decision to cancel.
It claims, after all, the industry is in “a state of emergency”. GM’s protracted crisis only exacerbates the situation.
A look at the areas of potential impact provide considerable food for thought: scrappage, of course, will lead the expectations of many.
Most industry watchers say we will hear in the Budget whether the UK is to have a scrappage scheme.
Other areas of concern include changes to VED refunds which could cost the industry £70-80 million a year, the proposed 2010/2011 introduction of a first year rate of tax on new cars, increases to DVLA first registration fees, fuel prices and taxation, benefit-in-kind on dealer demonstrators and rate relief on empty buildings.
The issues at hand are enough to cause sleepless nights at the best of times – in the middle of a crisis, the Budget will be critical to the survival of the sector as we know it.
Most industry watchers say we will hear in the Budget whether the UK is to have a scrappage scheme.
Other areas of concern include changes to VED refunds which could cost the industry £70-80 million a year, the proposed 2010/2011 introduction of a first year rate of tax on new cars, increases to DVLA first registration fees, fuel prices and taxation, benefit-in-kind on dealer demonstrators and rate relief on empty buildings.
The issues at hand are enough to cause sleepless nights at the best of times – in the middle of a crisis, the Budget will be critical to the survival of the sector as we know it.
DATED: 07.04.09
FEED: AM
Labels: Delayed Drafts
Monday, March 16, 2009
1car1 in administration
1car1, one of the largest independently owned car and van rental companies in the country, has gone into administration.
Staff at the Leeds-based company have been told of the situation.
Management has declined to comment thus far.
Seven hundred people are employed at the company
Staff at the Leeds-based company have been told of the situation.
Management has declined to comment thus far.
Seven hundred people are employed at the company
According to today's Sun newspaper, staff were sent a memo stating that: "We cannot guarantee salaries will be paid as normal at the end of this month.”
DATED: 16.03.09
FEED: AM
Labels: Delayed Drafts
Thursday, March 12, 2009
City suffers from Cattles' offal year
As Cattles' share price plummets again, the City's reputation is dealt another painful blow...
More woe for Cattles on Tuesday: the sub-prime lender posted its third profit warning in three weeks and announced that it had suspended another three of its senior execs over possible accounting irregularities. Its books are clearly in a mess: it's now going to have to restate its 2007 financial results (when it supposedly recorded pre-tax profits of £165m), and it’s forecasting a 'significant loss' for 2008. Oh, and it's also breached its banking covenants, which could lead its own lenders to demand immediate repayment of their loans. As a result, the company's whole future - and that of its 4,000 staff - is at risk. Not exactly the kind of story that will restore the City's good name.
More woe for Cattles on Tuesday: the sub-prime lender posted its third profit warning in three weeks and announced that it had suspended another three of its senior execs over possible accounting irregularities. Its books are clearly in a mess: it's now going to have to restate its 2007 financial results (when it supposedly recorded pre-tax profits of £165m), and it’s forecasting a 'significant loss' for 2008. Oh, and it's also breached its banking covenants, which could lead its own lenders to demand immediate repayment of their loans. As a result, the company's whole future - and that of its 4,000 staff - is at risk. Not exactly the kind of story that will restore the City's good name.
Cattles’ woes are not entirely surprising: its business model involves borrowing money on the wholesale market and then lending it to people with poor credit histories. So it could hardly have been in a worse position as the housing and credit markets deteriorated. It looks like a classic top-of-the-market business: it grew rapidly in 2006 and 2007, as the high street banks started to get a bit nervous about sub-prime lending, but is now suffering as growing numbers of its cash-strapped customers default on their loans. Fancy that...
But it’s not just the business model that’s the problem. The beleaguered group said today that the group’s FD, along with the chairman and the risk director of its Welcome Financial lending division (which brings in most of Cattles’ revenue) have all been suspended, pending a ‘forensic review’ of how impairment charges were being applied. Following on from the suspension of Welcome’s MD, FD and operations director last week, this means the division’s entire management team is now under a cloud.
For Cattles, the end result is another profit warning and a breach of the terms on its bank loans – it’ll now be forced to go cap-in-hand to its bankers to ask for some breathing space while it gets its house in order. It looks as though its credit rating will soon be as chequered as most of its customers. It's also seen another 14% wiped off its share price today, having already lost about 99% of its market value this year. Ouch.
It’s an episode that may fatally damage Cattles’ reputation, and it won’t do much for the City’s either – lots of people are already convinced the Square Mile is full of crooks, and episodes like this will do nothing to disabuse them of that notion...
But it’s not just the business model that’s the problem. The beleaguered group said today that the group’s FD, along with the chairman and the risk director of its Welcome Financial lending division (which brings in most of Cattles’ revenue) have all been suspended, pending a ‘forensic review’ of how impairment charges were being applied. Following on from the suspension of Welcome’s MD, FD and operations director last week, this means the division’s entire management team is now under a cloud.
For Cattles, the end result is another profit warning and a breach of the terms on its bank loans – it’ll now be forced to go cap-in-hand to its bankers to ask for some breathing space while it gets its house in order. It looks as though its credit rating will soon be as chequered as most of its customers. It's also seen another 14% wiped off its share price today, having already lost about 99% of its market value this year. Ouch.
It’s an episode that may fatally damage Cattles’ reputation, and it won’t do much for the City’s either – lots of people are already convinced the Square Mile is full of crooks, and episodes like this will do nothing to disabuse them of that notion...
DATED: 12.03.9
FEED: MGT
Labels: Delayed Drafts
Friday, February 27, 2009
GM agrees to Opel restructuring plan
General Motors' German unit Opel this afternoon agreed to a restructuring plan that aims to save as many jobs and factories as possible but needs 3.3 billion euros ($4.18 billion) in state aid, GM officials said.The idea is to split off Opel into a separate unit that would remain linked to its stricken U.S. parent while letting outside investors take a stake of more than a quarter, GM Europe President Carl-Peter Forster told a news conference. "There are still no decisions about plant closures or forced layoffs,"
DATED: 27.02.09
FEED: ANE
Labels: Delayed Drafts
Thursday, January 22, 2009
Buy Out secures dealers future
REGENT Automotive Ltd has bought 3 of H.R. Owen’s London Volvo dealerships, in a management buy-out.
The Marylebone, Colindale and Chiswick sites will now trade under the
The Marylebone, Colindale and Chiswick sites will now trade under the
'Volvo Cars London' name.
It is the latest move in H.R. Owen’s commitment to dispose of all its non-specialist brands.
Regent MD Tracey Perry leads the buy-out, with financial funding from Barclays Bank and Ford Financial. It secures the jobs of 110 people across the 3 sites, which will turn over £40 million in 2009.
The deal includes Volvo’s UK flagship site in Chiswick, which opened in October
Also joining Perry, who’s had a 26-year career with Volvo, are aftersales director Frank Fisher, plus fellow directors Barry Green and David Jaggar.
‘This is a fantastic operation with excellent potential, a loyal team of staff and a great brand in Volvo,’ said Perry.
‘The 4 directors involved also bring a wealth of industry expertise to this venture, and with Volvo sales bucking national trends and increasing in the UK, this is a great opportunity for Volvo Cars London to flourish.’
Last year, Volvo sales increased by almost 11 per cent, in a market so many makers have suffered heavily.
But what sets the new team apart? ‘We have experience, knowledge and enthusiasm of both the brand and the market place,’ said Perry. ‘We are really excited about applying this in our own way.’
DATED: 22.01.09
FEED: CDM
Labels: Delayed Drafts
Wednesday, January 16, 2008
Young quits after LDV sales slump
Steve Young, who resigned just before Christmas 18 months after being appointed chief executive of LDV, has told suppliers it was “for personal reasons”. He is “pursuing other opportunities”. Young is reported as saying: “Because of some personal, family reasons, it suits me to leave LDV now. Other factors aside, I would have stayed longer.”
Young, who could not be contacted, quit soon after the Birmingham vanmaker cut production to three days a week in December. It blamed a drop in orders. His departure was a surprise.
A former Ford executive, Young was part of a new executive team recruited by Russian commercial vehicle maker Gaz in July 2006. Gaz acquired LDV from Sun, a US private equity group.
Some industry watchers believe Young’s decision is linked to a boardroom reshuffle.
In a statement, Gaz said Young’s replacement as a director of the company was Eugeny Vereschagin, chief financial officer of Gaz power train division. Martin Leach, executive chairman of LDV, and a former Ford executive, is acting chief executive. Leach said LDV has been through “enormous change” over the past 18 months, launching new products and making improvements.
DATED: 16.01.08
FEED: AM
Young, who could not be contacted, quit soon after the Birmingham vanmaker cut production to three days a week in December. It blamed a drop in orders. His departure was a surprise.
A former Ford executive, Young was part of a new executive team recruited by Russian commercial vehicle maker Gaz in July 2006. Gaz acquired LDV from Sun, a US private equity group.
Some industry watchers believe Young’s decision is linked to a boardroom reshuffle.
In a statement, Gaz said Young’s replacement as a director of the company was Eugeny Vereschagin, chief financial officer of Gaz power train division. Martin Leach, executive chairman of LDV, and a former Ford executive, is acting chief executive. Leach said LDV has been through “enormous change” over the past 18 months, launching new products and making improvements.
DATED: 16.01.08
FEED: AM
Labels: Delayed Drafts
