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General News UpdateBack

ArnoldCArnold Clark opens used car Motorstore in Wigan

Arnold Clark Automobiles, Europe’s largest independent car dealer, has opened a new Motorstore branch in Wigan.

The branch has 250 new and used cars on display, with access to over 15,000 vehicles on the Arnold Clark network.

There is also a dedicated service and repair department, valeting area and Wi-Fi access.

Arnold Clark Motorstore franchise manager Brian Webster said: “Motorstore has proven itself to be a tremendous brand for Arnold Clark, and it’s always exciting to welcome a new branch to the Arnold Clark family. We’re looking forward to continuing to offer our great value and excellent service to customers at the new showroom.”

The appointed area general manager is Euan Craig.

He has been with Arnold Clark for more than 10 years.

This will be the 21st Arnold Clark Motorstore to open, with the first, Motherwell, opening in 2001.

Motorstore Burton was opened earlier this year, with Motorstore Chesterfield following recently.

With over 60 years of experience, Arnold Clark is Europe’s largest independently owned, family-run car company. The company employs over 9,000 staff and has over 200 branches across Scotland and England.

Arnold Clark has been winner of AM’s prestigious ‘Retailer of the Year’ award for three consecutive years.

This year’s AM Awards takes place on February 11 at the Birmingham ICC.


MoneyDealership salaries set to rise in 2016

Dealership salaries are set to rise in 2016 with strong profitability and the improving UK economy.

The increases will come on top of those already seen last year. The majority of management roles saw their average salaries increase in 2015, according to the BDO Motor Retail Motor Salary Survey 2015.

The average base salary for all positions surveyed was £32,000 compared to £29,000 in 2014 with a further £10,900 received in commissions and benefits.

The average managing director made £181,000 in 2015 compared to £130,000 in 2014.

The average salary for the current year by managing directors in companies with turnover up to £50m was £182,000 compared to £165,000 in 2014.

BDO said these packages contained “a significant proportion” of commissions, ranging from 20% to 75% of their total package.

“The key themes found in 2015 are the continued minimal change of non-management salaries, reasonable increases in management salaries following historic reductions and the overall percentage of those paying into pensions from 55% in 2014 to 75%.

“Our expectation for the forthcoming year is that salary increases will be commonplace as dealers start to implement pay increases following the continued strengthening of dealer profitability and the UK economy generally with national data showing wages increasing now at around 3%.

“Further to this, with recent legislation with regards to the new living wage we also expect to see some impact around the lower paid positions with higher than average increases,” said Malcolm Thixton, head of motor retail, BDO.


MarshallMotorMarshalls ‘primed for further acquisitions’, announces results March 17

Marshall Motor Holdings said it has seen improvement in its profitability and is set to meet its expectations for 2015. It is reported to be in a strong position for more acquisitions.

The car dealer and leasing company said its retail and leasing divisions both improved year-on-year in 2015, though this has been offset partially on the bottom line by a rise in costs for the group related to its stock-market float in London in April.

Marshalls said in a statement it still expects a big improvement in profitability in the year to the end of December, despite the costs, and maintained its expectations for 2015.

Marshall Motor will publish its annual results on March 17.

It added: “The remaining net proceeds of the IPO, together with the group’s £75 million revolving credit facility – which is currently undrawn – provide significant resources to fund further organic and acquisition-driven growth.”

“The group continued to build on the strong financial performance reported during the first half of the period with further material improvement in profitability during the second half of the period,” it said in a statement.

“During the period the group’s financial performance in both its retail and leasing divisions was ahead of the comparable period in 2014.

“This was partly offset, as expected, by increases in central costs (including additional costs related to our new public company status as reported in the first half of the period).”

“Our focus remains on ensuring a strong strategic and financial case for ‎any transaction we seek to make.”

The group’s retail division continued to show “good growth” in both revenue and profitability during the period compared to 2014.

This was driven by a combination of contributions from recently acquired businesses, brand portfolio management in the prior year in line with strategy and like-for-like growth.

The group also recorded like-for-like unit growth in both new and used vehicle sales and aftersales revenues.

During the first half of the financial year, Marshall’s leasing division reported a material growth in profitability, largely driven by increased de-fleet activity.

As anticipated, fleet disposals in the second half of the year were more in line with those reported in the comparable period in 2014.

Residual values remained robust and the number of vehicles in the fleet at the end of the year was, as expected, broadly in line with last year.

Marshall broker Investec said the dealer looks “well-placed to deliver robust growth”, with a material earnings boost from its recent acquisition and scope for further deals to be made given its strong financial position.

Investec analysts said Marshall’s guidance to higher profit for 2015 was reassuring, and Investec expects the recent acquisition of car dealer SG Smith, which it bought for £24.4m in November, should deliver a “material earnings per share enhancement”.

In addition, with a debt-free balance sheet and an undrawn £75m revolving credit facility as its disposal, Marshall “has the firepower to make more deals like this”.

The analysts said they expect Marshall to produce further growth both in its existing businesses and those newly-acquired units in 2016 and kept a buy rating on the shares, with an unchanged 230 pence price target.


Posted by Sue Robinson on 15/01/2016