Reg Vardy warns of lower new car sales
Susie Mesure writes interviews, news and features for the Independent on Sunday, Independent and i, and has done for the last ten years or so give or take two lengthy maternity leaves. She is interested in just about any topic, especially anything Scandinavian, food, or consumer-orientated, and used to be the Independent’s Retail Correspondent
Tuesday 08 February 2005
The company echoed the recent glum tone struck by the industry trade body, admitting that trading in the first three months of its second half had been "subdued". It said full-year results would be at the bottom end of analysts' expectations, prompting its shares to fall 25.5p to 504.5p.
The warning from Reg Vardy - in which Jack Petchey, the octogenarian property investor, is a 6 per cent shareholder - knocked shares across the car dealership sector. Pendragon's shares dived 4 per cent to 294.25p, while HR Owen slipped 5p to 222.5p.
The Society of Motor Manufacturers and Traders last week reported a 21.2 per cent slump in new car sales to private customers in January. It said total UK new car sales in the month were down 8.2 per cent, offset by better fleet car sales, following a 7.1 per cent dive in December. The SMMT forecast that new car sales in 2005 would slump, hitting 2.48 million against 2.57 million last year.
To soften the blow, Reg Vardy said it had performed "a little ahead" of the SMMT's figures and had experienced good used-car demand. It reiterated that its most important month of the year in terms of annual profitability, March, was still to come. Its bottom line will be further boosted by extra profits relating to property disposals during the rest of this financial year, it added. Dresdner Kleinwort Wasserstein is forecasting pre-tax profits after goodwill, but before property profits, of pounds 36.5m in the year to April.
Reg Vardy has almost 100 dealerships across the UK and sells most of the major brands including the specialist marques Aston Martin, Jaguar and Land Rover. It has a contract-hire division that leases cars to companies on 36-month deals.
- 1 Forget 'The Dress': Here are five of the biggest news stories you might have missed
- 2 The black and blue dress: Makers considering a white and gold version
- 3 PornHub turns masturbation into energy in bid to save the planet
- 5 Saudi Muslim cleric claims the Earth is 'stationary' and the sun rotates around it
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'
iJobs Money & Business
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...