Forecourt Trader - 30 years at the heart of the fuel retailing community
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Money Talk: Selling up and getting-out - there are several ways of valuing a business

Last month we looked at valuing a business for potential sale using its most recent balance sheet and noted several good reasons why any prospective buyer might not take even an accurate and up-to-date balance sheet at face value. In particular, that the figures are at historic cost, and that there may be potential liabilities that are difficult to quantify and show.

Money Talk: Selling up your site and getting out...

In the course of any business there comes a time when the owners think about selling up. If the business is successful they might want to get out at a reasonably early age and enjoy a long retirement somewhere sunny. If the business is very successful, someone may come along out of the blue with an offer to buy them out before they've even thought about retirement. Usually it comes down to age and/or personal circumstances. Nobody really wants to work until they drop especially in a hard business like petrol retailing. Eventually the question that most operators ask themselves is "How much is my business worth?" Usually the next person they ask is their accountant.

Money Talk: Petrol versus pub

How's trading been so far this year for you? While it's too early for any figures, conversations with retailers in both the petrol and hospitality sectors (regular readers will know that at EKW we've had a foot in both camps for many years), suggest that the recent post-Christmas 'quiet period' has been quieter than any they can remember.

Money Talk: Looking for a light in the January darkness

Welcome to January, the bleakest of months what with the darkness and the bills arriving after that little self indulgence at Christmas. And that was just in the good times. Following the events of 2016 (think Brexit, Trump, US interest rate rise, etc), the economic outlook is the most uncertain since the financial crash of 2007/08 and the forecourt retail industry won't be immune to whatever happens to the wider economy.

Money Talk: Autumn in the wilderness

If there wasn't really much drama around the Autumn Statement that the Chancellor delivered on the 23rd of November, there was at least a little of the flavour of pantomime: this was to be the last 'Autumn Statement' because in future the 'real Budget' will move to autumn; so what we used to know as 'The Budget' will be in the autumn, and in its' place we'll have a 'Spring Statement' although the name won't actually change until after the 'Budget' due next March (2017). Confused? Maybe they should just call it 'Springwatch' and 'Autumnwatch'.

Money Talk: Interesting times...

The new Chancellor Philip Hammond, in case you hadn't noticed is due to deliver his first mini-Budget, more formally known as the Autumn Statement, in just a few weeks time on November 23. As these things go, there seem to have been remarkably few hints or leaks as to what might be in it. In fact so few, that some cynics are wondering whether he's going to simply make it up as he goes along on the day, much like other government policy since July.

Money Talk: Make sure you take time to take stock

Sometimes it comes as a bit of a shock to end up discussing something as basic as stocktaking with a retailer. We all tend to assume that the principles of stock management including knowing how much stock is really there are so fundamental to any sort of retail activity as to be beyond the need for explicit discussion. Yet it happens typically when we've just produced a set of accounts using the first real stock figures after months (sometimes many months) of book or system stock values.

Money Talk: How hard are you sweating your assets?

In every business there comes a time when major expenditure is required just to be able to keep that business going. In the world of petrol retailing that could be new tanks and underground plumbing (maybe every 20-25 years); new pumps or rollover washes (maybe every 15 years); new canopy, fascias and lighting (maybe every 10 years or sooner if the site changes supply or branding); or new POS and EFT equipment (again, perhaps every 10 years).

Money Talk: Brexit means business as usual... for now

It seems like a very long time since June 23. Yet as this is being written, the new Prime Minister is still making the last appointments of her new government team and everyone else is still grappling with the possible consequences of the referendum result. So it was quite interesting to have had a chance conversation with a petrol retailer client on the same subject just a few days ago.

Money Talk: Your car wash - dead space or profit centre?

Hundreds of forecourts have the same problem: a large and heavy piece of equipment taking up quite a lot of space in its own dedicated area which, although costly to install and maintain, has produced very decent profits for many years. But that was before a no-tech alternative sprang up causing the market for their particular service offering to collapse almost overnight. Today that once-expensive piece of equipment sits under-used (if used at all) and physically decaying.

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Weekly retail fuel prices: 4 November 2019
RegionDieselLPGSuper ULUL
East130.9367.90138.13126.75
East Midlands130.73139.73126.64
London130.73139.60127.04
North East129.5562.90137.10125.31
North West129.9963.90138.40126.48
Northern Ireland128.05133.57124.33
Scotland130.6059.30137.24126.23
South East131.4566.90139.66127.42
South West130.7674.90137.94126.68
Wales129.84136.06125.42
West Midlands130.4059.90137.63126.57
Yorkshire & Humber130.02139.47126.29

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