Broad Lane Leisure in Administration (1 Viewer)

[enark]

Looking at some of the larger dealers, one based near Newark, £7M profit in 2022 companies house returns. Sure many have plenty of surplus to keep them going through dips in the market?

 

[Coolcats]

Friend of mine works at a dealership and tells me vans have to be paid for before delivery

That’s not unusual and it’s normally underwritten by finance, most of the organisations don’t have millions to tie up in stock so the stock is underwritten by finance houses, you can carry the stock for x period but payments have to be made to the finance house

 

[Coolcats]

Looking at some of the larger dealers, one based near Newark, £7M profit in 2022 companies house returns. Sure many have plenty of surplus to keep them going through dips in the market?

Profit is sanity turnover is vanity… have you worked out there overheads that £7m may only keep them going for xx months

 

[Geistguy]

Not saying that this is the case but dealers can borrow using their used stock as security for a loan, this used to be called "refinancing". This works well when turnover of stock is good but can lead to big financial problems when sales slow.

 

[chaser]

Profit is sanity turnover is vanity… have you worked out there overheads that £7m may only keep them going for xx months

I was just going to say, it's ok having 7 million profit, its what they do with it that matters, they may think, this is good we will expand into the next place or buy a load of motorhomes or hundred and one things but when folks stop buying them they are in a mess because they have nothing else.

^{_{Subscribers  do not see these advertisements}}

 

[Jim]

They were still posting away on Linked in Over the weekend. Some PR Company is going to get a shock when they send in their invoice

Sign Up | LinkedIn

500 million+ members | Manage your professional identity. Build and engage with your professional network. Access knowledge, insights and opportunities.

www.linkedin.com

 

[TCG]

They were still posting away on Linked in Over the weekend. Some PR Company is going to get a shock when they send in their invoice

Sign Up | LinkedIn

500 million+ members | Manage your professional identity. Build and engage with your professional network. Access knowledge, insights and opportunities.

www.linkedin.com

crazy when their website states

 

[Jim]

crazy when their website states

It will have been some advance posting automation set up by their PR people. Their Linkedin account shows the administration message this morning

 

[Coolcats]

I was just going to say, it's ok having 7 million profit, its what they do with it that matters, they may think, this is good we will expand into the next place or buy a load of motorhomes or hundred and one things but when folks stop buying them they are in a mess because they have nothing else.

Many organisations are in a survive position at the moment, cycle shops and cycle manufactures are having a bumpy ride. Sup and inflatable sales have sunk. People have or are cancelling subscriptions. I noticed Ooni pizza ovens have sale prices but those and barbecue's may be due to the wet summer.

Also when you think a MoHo can easily cost £150k if there are 30 or 40 the value would be £6m+ tied up in stock if you were generous and said a 20-25% margin that’s £1.2- £1.5m start taking off staff costs £500k and overheads there’s not much profit so when £7m has been made that’s a lot of stock shifted and now there is a down turn it could be feast to famin and that profit may keep them afloat until the market stabilises

Who knows the above is guess work but probably not far out

 

[enark]

I was just going to say, it's ok having 7 million profit, its what they do with it that matters, they may think, this is good we will expand into the next place or buy a load of motorhomes or hundred and one things but when folks stop buying them they are in a mess because they have nothing else.

It looks as though they have invested in solar panels, so to reduce energy bills? Rest unclear?

Much of the second hand stock, presently 89, maybe have been part exed for new models, so profit there?

Also if they paid low part ex prices, then they can afford for them to sit on the park for six months as they will eventually sell and still turn a profit?

The service bays are still rammed, so that aspect clearly profitable.

One other thing i noted, the specific site was recently sold to Dorset Council pension fund, and leased back at £500k pa?

^{_{Subscribers  do not see these advertisements}}

 

[CazPaul]

It looks as though they have invested in solar panels, so to reduce energy bills? Rest unclear?

Much of the second hand stock, presently 89, maybe have been part exed for new models, so profit there?

Also if they paid low part ex prices, then they can afford for them to sit on the park for six months as they will eventually sell and still turn a profit?

The service bays are still rammed, so that aspect clearly profitable.

One other thing i noted, the specific site was recently sold to Dorset Council pension fund, and leased back at £500k pa?

Half a million per annum to lease a site, good grief with financial decisions like that it’s no wonder things have got bad.

 

[chaser]

I would say the whole industry has got way out of hand.
Too many people coming out of COVID with a bit of money, and not knowing anything about motorhomes but see these fancy prices and people talking about getting back what they paid 5 years later and so willing to pay these fancy prices , dealers and manufacturers likewise think they can charge what they like and just keep increasing prices.
But now that five years is coming to an end and these guys who bought these things are now fed up of the life and trying to get rid but now there is not the money about and other holiday trips are available and the dealers and makers are finding they can't keep putting up the prices to make up the shortfall as the big money has gone.

 

[Tombola]

last of the stock

John Pye Auctions

John Pye Auctions is the UK's leading commercial auction house network – offering the most varied collection of online auctions sales.

www.johnpyeauctions.co.uk

 

[chaser]

last of the stock

John Pye Auctions

John Pye Auctions is the UK's leading commercial auction house network – offering the most varied collection of online auctions sales.

www.johnpyeauctions.co.uk

If it's like other John Pye auctions, expect to pay half as much again that you bid in vat ,buyers premium and whatever else they can add on.

 

[Tombola]

If it's like other John Pye auctions, expect to pay half as much again that you bid in vat ,buyers premium and whatever else they can add on.

thats correct, like most auctions, taxes, buyers fees yadda yadda have to be worked in

^{_{Subscribers  do not see these advertisements}}

 

[DerryW]

Half a million per annum to lease a site, good grief with financial decisions like that it’s no wonder things have got bad.

That’s half £m before you even turn on a light, not forgetting rates which will be c£200k. So you can see why they need those sales with a good profit margin.

 

[DerryW]

If it's like other John Pye auctions, expect to pay half as much again that you bid in vat ,buyers premium and whatever else they can add on.

Just what I was going to say. Very very keen guide prices, but as we all know that’s all they are, guide prices.

 

[DerryW]

Slightly off topic. Surely this will filter down to the two large club sites with regard to their
Increased margins and inflated pitch prices over the last 3 years.

Like all responsible business they need to remain sustainable and make a profit, but even they can’t deny increased margins.

Supply and demand is key to survival.

Wishful thinking.

 

[nicholsong]

I would say the whole industry has got way out of hand.
Too many people coming out of COVID with a bit of money, and not knowing anything about motorhomes but see these fancy prices and people talking about getting back what they paid 5 years later and so willing to pay these fancy prices , dealers and manufacturers likewise think they can charge what they like and just keep increasing prices.
But now that five years is coming to an end and these guys who bought these things are now fed up of the life and trying to get rid but now there is not the money about and other holiday trips are available and the dealers and makers are finding they can't keep putting up the prices to make up the shortfall as the big money has gone.

We are approaching Autumn and there is reportedly a lot of stock on dealers' forecourts, so expect a lot of dealer failures before and after Christmas.

More fool any business that pays finance houses to finance their stock, rather than do it out off retained profits.

Administrators to the fore!

Good business model might be a group including a finance house and Auditors/Administrators. It would make money when the markets are up or down.

OH! have the Big Five cornered that market already?

 

[Tony50]

Slightly off topic. Surely this will filter down to the two large club sites with regard to their
Increased margins and inflated pitch prices over the last 3 years.

Like all responsible business they need to remain sustainable and make a profit, but even they can’t deny increased margins.

Supply and demand is key to survival.

Wishful thinking.

We on C&M club site in centre of Racecourse at Great Yarmouth Norfolk, usually last week in July it's full, it's not, plenty of pitches at £34 per night for 2 !!

^{_{Subscribers  do not see these advertisements}}