Car Dealer Podcast: Zeus Capital’s Mike Allen joins as we talk Lookers, Marshall and what the future may hold – Batch plans his Bronco campaign

  • Zeus Capital head of research Mike Allen joins Rebecca and Batch on the Car Dealer Podcast
  • This week’s stories include Constellation, Jaguar Land Rover, and selling Broncos in the UK
  • Listen now on Spotify, Apple Podcasts and more

Time 8:48 am, February 7, 2022

Only one month into the year and 2022 has already been a rollercoaster of surprises. This week had been no different with the shock news that Constellation would be buying shares in another dealer group.

Mike Allen, head of research at Zeus Capital, joined the Ca Dealer Podcast this week to discuss what we’re seeing in 2022 already and what the year ahead could hold.

He said: ‘2021 was a great year for all dealers I speak to, whether they’re a PLC or private groups, they’ve all had a great time. Will 2022 be a little bit harder?

‘The consumers have more pressure on them with energy costs, used car prices will come under a bit of pressure.’

‘However, the way all of these guys bounced out of Covid. And by making these profits, a lot of them converted it into cash so they’ve got great balance sheets and they’re generating a lot of cash at the moment.’

Allen joined Rebecca Chaplin and James Batchelor as they discussed the changing motoring landscape, including Jaguar Land Rover’s profits, whether Ford has put Arnold Clark on notice, and changes to EV tax. Listen now to the show by clicking play above.

Talking about the news that Constellation had bought a 20 per cent stake in Lookers, Allen commented that this ‘shrewd’ deal had got them the shares at a good price from shareholder Tony Bramall.

‘I think it’s a very shrewd investment. The price paid for the stake looks very cheap at nine times P/E (price-earnings) by our calculations,’ he said.

‘It’s quite clever in terms of making that kind of stake.’

Get more from Car Dealer

  • Premium stories
  • Used car data
  • Magazine early access

He added: ‘Those shareholders wanted the businesses to go into good hands, and Constellation knows the market very, very well. I think these guys wouldn’t just sell out to anybody.’

To hear what Mike Allen had to say in full, you can find the Car Dealer Podcast on Apple Podcasts, Spotify, and more. If you want to know more about all of the stories featured then you can find them linked below.

If you’d like to join the Car Dealer Podcast as a guest judge then drop the team an email on [email protected].

Rebecca Chaplin's avatar

Rebecca has been a motoring and business journalist since 2014, previously writing and presenting for titles such as the Press Association, Auto Express and Car Buyer. She has worked in many roles for Car Dealer Magazine’s publisher Blackball Media including head of editorial.

More stories...

Server 190