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Hi, I am looking for someone to write an article on reg vardys financial analysis Paper must be at least 2500 words. Please, no plagiarized work!
Hi, I am looking for someone to write an article on reg vardys financial analysis Paper must be at least 2500 words. Please, no plagiarized work! The company, which is named after founder Reg Vardy, is one of the leading motor retail groups in the United Kingdom. Reg Vardy was initially established as a haulage business at Houghton-le-Spring. Due to the success of the business, it diversified into the sale of vehicles (Yahoo! Finance 2005).
Under the leadership of the founder's successor, Chief Executive Officer Sir Peter Vardy, the firm acquired franchises from a number of the finest motor and car manufacturers in the world. Through the course of the company history, Reg Vardy was appointed as the sole distributor of Aston Martin for the North of England. This was followed by the company's franchise of Ferrari and Rolls Royce. Reg Vardy was also awarded the main dealer franchise for other marques such as Jaguar/Daimler, Mercedes and BMW among others. (Company History 2005)
In 1989, Reg Vardy became listed in the London Stock Exchange. The initial flotation has raised about 5 million and allowed for expansion outside North East Heathen. With this, the company expanded further as it acquired more dealerships from other volume marques. (Company History 2005)
To finance its expansion binge, the company issued rights in 1998 and raised 26 million. The fund was used to acquire Trust Motor Group, the firm's largest acquisition to date. In the same period, the company also established Vardy Contract Motoring, which is focused on contract hiring and leasing operations (Company History 2005). This year, Reg Vardy pushes through with its strategic acquisitions given the upcoming purchase of five dealerships from the Priory Motor Group. This highlights the company's strategy of acquiring performing and high-quality business that accounts from payments of goodwill. (Reg Vardy PLC Annual Report 2005)
So far, Reg Vardy sells about 200,000 vehicles annually and employs around 6,000 workers. It has also substantially increased its total franchises to 98 dealerships in 2005 from only 63 dealerships in 1998 (Reg Vardy PLC Annual Report 2005). The company continues to distribute new and used cars for Aston Martin, Renault, Alfa Romeo, Audi, BMW, Citroen, Fiat, Mercedes and Jaguar. Its major shareholders include the Vardy family (28%), Deutche Bank (20.6%) and Aegon (3.59%). (Yahoo! Finance 2005) It can be seen that Reg Vardy managed to pose a 6.7% growth in turnover, to £1.7 billion in 2005 from £1.6 billion in the previous year. . However, this level of increase is way below the industry average of the miscellaneous manufacturing group. . According to MSN MoneyCentral, the company’s sales growth differs from the industry average by –123.7 percentage points. .In addition, the firm generated profits on ordinary activities after taxation of about £32.7 million in 2005, which is about 1.9% lower than its earnings for 2004. . The reduction in earnings is attributed to the adverse impact of declining volumes of new vehicles sold to private customers in the United Kingdom. . .
