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BCA Marketplace profits up 17.9% in full year results

BCA auction

BCA Marketplace has boosted operating profits by 17.9% from £74.3 million to £87.6m in its annual results.

Group revenue was £2,431.5m (2017: £2,029.7m) and the business saw increased volumes across all divisions, with its UK Vehicle Remarketing division achieving over one million vehicles sold in the year.

Adjusted EBITDA increased by 17.6% to £159.5m while adjusted diluted earnings per share has increased to 11.4p, up 25.3% (compared to 9.1p in 2017).

Avril Palmer-Baunack, BCA Group executive chairman, said: "The strong group performance reflects our unique position within the Automotive solutions sector.

“BCA has the infrastructure, the range of digital and physical capabilities, a history of good service and innovation and we are now providing solutions at scale.

“These capabilities, especially the services within the more recently acquired businesses, have continued to be integrated in order to provide comprehensive customer solutions and the efficiencies that have supported the Group's growth, cash generation and dividend policy.”

Palmer-Baunack said the new financial year has started well, with performance since the year end in line with expectations.

UK Vehicle Remarketing

The volume of vehicles sold through BCA’s UK auctions grew by 6.5% to 1.01m over the last financial year.

BCA said this was driven by strong growth in volume sourced from the Vehicle Buying division, wihch includes WeBuyAnyCar, alongside new customer wins in both the OEM and franchised and non-franchised dealer sectors, with increasing volumes from existing customers.

UK Vehicle Remarketing revenue increased by 24.9% to £941.4m, driven primarily by the growth of outsourced remarketing contract volume (where the full sales value is included within revenue) as well as growth of remarketing volume and penetration of remarketing services.

BCA Partner Finance penetration increased to 12.6% of all UK Vehicle Remarketing vehicles sold in March 2018 (March 2017: 11.3%). The resultant asset backed loan book grew to £148.4m (2017: £113.4m) reflecting the increased volume and a higher average value of the vehicles financed at the year end. BCA Partner Finance funded £841m of vehicles during the year (2017: £577m).

Adjusted EBITDA per vehicle increased by 10.2% to £97. BCA said this was achieved despite a backdrop of legislative changes leading to higher costs of labour, business rates and insurance premium tax.

WeBuyAnyCar

WeBuyAnyCar saw its sixth year of double digit volume growth, an increase of 25,000 vehicles or 12.9% compared to the prior year.

The increased volume and higher average price per vehicle drove revenue 15.3% higher to £920.3m. The average sale time on cars bought by WeBuyAnyCar was 10 days.

The business now has a network of 225 branches and the most expensive model sold was a £216,000 Rolls-Royce Wraith Coupe. The oldest car purchased was a 40 year old MG Midget 1500, and the rarest purchases included a Corvette Stingray, a Ford Dorchester, a Lamborghini Gallardo Spyder and a Pontiac Firebird.

The increased volume of vehicles sold drove a 17.9% improvement in adjusted EBITDA to £23.0m (2017: £19.5m). The ongoing refinement of our valuation process allows margins to be tightly controlled while continuing to deliver growth in volumes.

  Year ended 1 April 2018         Year ended 2 April 2017      
  Revenue Adjusted EBITDA Other SONR Operating profit Revenue   Adjusted EBITDA Other SONR Operating profit
  £m £m £m £m £m   £m £m £m
UK Vehicle Remarketing 941.4 98.8 -0.7 67.1 753.8   84 4.8 57.8
International Vehicle Remarketing 154.3 30.1 -1.7 12.4 135.4   26.2 0.3 11.7
Vehicle Buying 980.5 23 - 15.9 837   19.5 - 12.2
Automotive Services 355.3 21.5 -0.6 8 303.5   17.2 0.7 7.4
Group costs - -13.9 -1.8 -15.8 -   -11.3 -3.4 -14.8
Total 2,431.50 159.5 -4.8 87.6 2,029.70   135.6 2.4 74.3


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