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1st Quarter 2017 Newsletter
Greetings and a Happy and prosperous New Year to you all,
The level of growth we have experienced over the past year has been tremendous and coupled with the acquisition of several industry veterans as well as new graduates, we strongly believe our business is shaping up to be a force in the industry.
The European Valuations team thanks you for your ongoing support and we look forward to working with you.
Wishing you all the best for the forthcoming year.
Gordon, Peter & Dan.
PLANT & MACHINERY : INVENTORY : ACCOUNTS RECEIVABLE : PROPERTY
Accurate. Rapid. Reliable. Market-Focused.
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New name reflects our focus…
You will have noticed that we have evolved the name of our business from GAEV to European Valuations.
Over the last few years we are proud to have grown our business substantially and continued to develop a unique industry brand known for its independence, excellent customer relationships, speed of service and accurate, market-focused advice and solutions.
The re-branding to European Valuations reflects and reinforces our independence, strength and focus to be the UK market leader in appraisal services.
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Our London office has moved...
We are pleased to announce that due to our continuing growth we have moved in to new and larger premises in London.
Our new London address is:
5 Willoughby Street,
London
WC1A 1JD.
Telephone numbers have not changed.
We would love to see you so please feel free to pop in for a "cuppa" at any time.
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Spotlight on ABL Valuation
Over the past 12 months we have worked with and continue to support a majority of the UK based Asset Based Lending market in a diverse range of sectors and across varied asset classes in various jurisdictions including USA, Canada, Germany, Spain, Italy, Netherlands, Belgium, Czech Republic, Norway, Poland, Serbia and France.
Across the asset classes we service we have completed more than 160 projects with a total asset values in excess of £2.4 billion. The top five sectors we have worked in are
- Aerospace/ Aviation.
- Construction (inc. plant hire).
- Retail (inc. non-clothing).
- Food (inc. frozen).
- Packaging.
Other notable sectors we have worked in are: Recruitment, Wholesale; Office Supplies; Print; Electronics; Beverages; Metals (inc. stockholders) and Automotive.
Inventory Highlight: A valuation of a listed UK high street retail business to support an ABL inventory only facility. Inventory value circa £112M. Inventory held in 300+ stores across UK & Ireland and central distribution centre.
Plant & Machinery Highlight: A multi-million pound valuation of a 3-site business in the Global Aerospace, Industrial Gas Turbine and Nuclear Industries. The valuation included 3 specialist multi axis CNC machine tools and numerous high quality EDM equipment. We were able to administer all site visits and report within just 2 weeks from formal instruction.
Accounts Receivable Highlight: An audit/survey of a UK recruitment group with 6 separate companies with combined revenues of £850M; £100M+ of receivables with 100+ debtors. We were able to visit all sites and deliver our report within 10 working days.
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Spotlight on Property
Over the past couple of months, we have noticed an increase of interest in Industrial units but also of a greater reluctance of Landlords to sell their properties due to the Improvement of rental yields. Prime yields for industrial property both remained relatively flat despite the uncertainty following the EU Referendum result, at 5.5% in quarter three. Following the referendum, activity in the industrial sector held up strongly as take-up reached 7 million sq. ft. The UK average vacancy rate has also fallen 6.2% due to lack of supply.*
The third quarter of 2016 had 10.45 million sq. ft. of warehouse space transacted proving to be an exceptional quarter. This is 4.7 million sq. ft. above the long-term average of 5.7 million sq. ft. and 166% up on the same quarter in 2015.**
Industrial property has performed very well and a lack of supply means that this will continue to be an attractive sector. There were only 20 units due for completion in late 2016/early 2017 totalling 3.8 million sq. ft. of speculative units under construction across the country with the West Midlands accounting for 37% of the speculative space due for delivery.
Cushman & Wakefield have forecast stronger levels of speculative development in 2017, particularly in the South West, Midlands and North West, where occupational demand is strongest.*
*www.savills.co.uk/research_articles/173927/208854-0
**www.savills.co.uk/research_articles/173927/208854-0)
***www.savills.co.uk/research_articles/173927/208854-0) & Cushman & Wakefield UK Industrial Report Q3 2016
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Brexit Update – Impact on Values?
The predicted immediate and significant impact on the UK economy did not happen and broadly speaking we have not seen a significant shift in asset prices and or values.
The process to extricate ourselves from the EU has the potential to take many years and until we understand what the final Brexit deal looks like and how it may impact the UK economy, it is difficult to predict what the full impact might be on different sectors/asset classes as each will differ.
All that being said, the decline in value of sterling should make assets valued in sterling potentially more attractive to foreign buyers but could also mean a decline in asset values for globally traded commodities priced in $USD and the derivative products made from those commodities.
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Spotlight on Insolvency
“…trend for 2016 has been broadly flat”.
It is well documented that the insolvency market continues to be challenging especially in the corporate sector. The insolvency service statistics confirm that for Q3 2016 total company insolvencies were slightly higher than the previous quarter and increased on the year. However, the trend for 2016 has been broadly flat.
Key published findings from the insolvency service show that in Q3 2016 company insolvencies increased overall. An estimated total of 3,633 companies entered insolvency in Q3 2016, which was 2.2% higher than Q2 2016 and 1.1% higher than Q3 2015. However, the liquidation rate was at its lowest level since comparable records began in Q4 1984*.
Peter Bache comments “Whilst the official statistics from the insolvency service confirm times are still tough & challenging for the insolvency market, 2016 has thrown up changes that may cause the industry trends to alter and create more opportunity. If that is the case, we look forward to working with and supporting our clients and partners.”
*https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/562493/Q3_2016_statistics_release_-_commentary.pdf
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GET IN TOUCH...
Gordon Titley
gtitley@eurovals.co.uk|07734 388785
Peter Bache
pbache@eurovals.co.uk|07774 174811
Dan Edgar
dedgar@eurovals.co.uk|
07827 999332
John Lawrence
jlawrence@eurovals.co.uk|07775 444796
Andrew Dunbar
adunbar@eurovals.co.uk|
07967 302675
OFFICES
Birmingham
Lancaster House,
67 Newhall Street
Birmingham
B3 1NQ
+44 (0)121 236 9992
London
5 Willoughby Street
London
WC1A 1JD
+44 (0)207 048 0184
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European Valuations is one of the UK’s leading firms of appraisers, surveyors and auctioneers, providing a fresh insight and vision to all business assets, machinery, inventory, accounts receivable and property.
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