Motor Industry
The UK's Motor retailers face major challenges. A little more than a year ago rising star Vertu was faced with what Chief Executive Director Robert Forrester called "the worst market position since the car was invented" - a stock of used cars worth £20m but falling in value at 5 per cent every month.
It is increasingly difficult for both large and small operators to show a respectable return on the considerable capital that has to be invested. The combination of reduced sales volumes, market overcapacity, tight margins and the need for heavy cash investment in premises and stock , make it difficult to generate profits and certainly not at the levels which may have been seen in earlier years.
Our experience is that many owner managers have found themselves reviewing the strategic direction for their business, including diversification or changes to their franchise operation.
We act for a wide range of clients involved in the motor trade. These range from small garages to large multi-franchise dealers and those involved in vehicle design. We have considerable experience of the specific issues relating to the sector and are well positioned to advise our clients in order to add value to the operation of their businesses.
So what have we been doing for our motor industry clients? Projects and services
Many car and bike businesses have built up investments in land and property as well as a significant customer base and trading history. Our aim is to consider the financial affairs of the owner managed retailer as a whole: to help them maximise profits and cash at all stages, and from every source.
Projects which are common within the sector at the moment include:
- Analysis of results between operating centres, including basis of overhead allocation and recovery rates
- Review of business operations. These take into account Inheritance tax and capital gains tax, particularly where investment in land and property has been built up over the years
- Diversification of the business and review of business operations for alternative uses
- Share valuations for inheritance tax and capital gains tax purposes, to potentially take advantage of opportunities created by reduced values
- Tax investigations and negotiations with the Inland Revenue
- Keyman insurance and other products designed to protect directors and senior staff.
Our specially developed range of services can provide your business with information, advice and support on:
- Benchmarking business performance
- Accounting and financial reporting systems
- Stock management reflecting our specialist knowledge
- Understanding retrospective discounts and bonuses
- Understanding set-aside bonuses and commission structures
- Understanding the value of write-downs and residuals
- Operating demonstrators and the tax implications
- Environmental issues
Plus the usual range of services you'd expect of a leading full service accountancy firm:
- Annual accounts and record-keeping
- Business tax, including corporation tax on income and gains, VAT and Capital Allowances
- PAYE and payroll
- Funding options, including premises, stock and finance
- Business transactions - property, shares, mergers, acquisitions and disposals
- Personal tax, including tax-efficient remuneration for directors, partners and sole-traders, capital gains tax and inheritance tax
- Corporate recovery, including business review, crisis stabilisation and turnaround, restructuring, corporate insolvency and advice on dealing with struggling suppliers and customers
Our team
We have a strong and knowledgeable team of motor industry practitioners who possess an inherent understanding of the specific needs of motor industry professionals. In a modern and vibrant business scene, our positive approach, expertise and practical advice can support and help you build your business.
