MERTHYR TYDFIL CAR AUCTION LIMITED

Transcription

1 MERTHYR TYDFIL CAR AUCTION LIMITED THE NEATH TO ABERGAVENNY TRUNK ROAD A465 ABERGAVENNY TO HIRWAUN DUALLING SCHEME SECTIONS 5 AND 6 DOWLAIS TOP TO HIRWAUN MAY 2018 REBUTTAL PROOF OF EVIDENCE OF DEAN DAVIES WORK\ \v

2 1 My name is Dean Davies, Sales Manager of Merthyr Motor Auctions (MMA). My personal details remain as stated in my original Proof of Evidence of April The contents of this rebuttal statement are true to the best of my knowledge and the opinions stated within it are my own. Where I have reported opinion or information given to me by others I have indicated so in the statement. 3 I have read the Welsh Government s response dated 27 April 2018 to clarification questions submitted on behalf of MMA on 17 April I respond to a number of those replies in this statement. 4 I believe I have set out adequately in my original proof why the loss of land and access the scheme would cause to MMA creates a threat of likely closure of the business. I am not adding more explanation here but am able to answer questions on the present use MMA s business makes of the land if required. 5 The directors of MMA have attended a number of meetings with Welsh Government representatives about this proposed CPO in which the nature of MMA s business and use of the land has been explained and questions answered. I do not accept that Welsh Government were unaware before the making of the CPO or thereafter about MMA s use of land or the potential impact on the business of the road. 6 Throughout this time MMA has been alert to the possibility of any suitable relocation sites becoming available but to date none have presented themselves. Discussions had included input from Welsh Government, local councillors and estate agents in the area. To date, to my knowledge, no-one has identified any site that is considered suitable for relocation. 7 I therefore remain of the view that there is a strong probability that MMA would not be able to relocate its present business successfully, including taking account of the timeframe within which MMA would need to vacate its present site under the proposed CPO. 8 I am not qualified in the assessment of CPO compensation for cessation of business, nor am I an accountant. However I have sought advice from within the company on its trading figures and with comparable businesses from which an understanding can be formed of how MMA s business could be valued. I understand this to be relevant to compensation should MMA's business be forced to close. These figures are not advanced as what the final claim by the company would be in the event of closure or as anything other than a preliminary indication of potential liability, however, using the approach adopted in the sale of auction group SMA Vehicle Remarketing the value of MMA s business would be in excess of 6m 1. This figure does not reflect the true value 1 See attached enclosure from FleetNews showing the SMA valuation adopted a multiple in excess of 9 times that company s EBITDA. MMA s earnings on the same basis over a three year period are in excess of 670,000 p.a. WORK\ \v

3 of MMA's business, which the Directors believe is substantially greater, however it is an indicator that allows the cost of the alterations we are suggesting to be compared with the cost of closure. 9 Our adviser on highway engineering, Peter Mansell, has prepared a further rebuttal statement on likely cost of the additional engineering works that we are seeking. That figure can be found in his statement and it is substantially less than the likely direct cost of the closure of the business. 10 I do not believe it would be right to confirm a CPO that carries with it the very real risk that an important local business would be forced to close, when the engineering cost to avoid that risk is small in comparison to the value of the business. 11 This, of course, does not include the benefits to the community financially, and in human terms, that will be achieved if MMA is allowed to continue trading successfully as it does at the moment employing over 30 local people, and not be forced to close as a consequence of the scheme. 12 I have seen that Welsh Government is opposing the engineering works we seek on the basis of fire safety risk and visual impact. 13 I confirm there is no reason why flammable material whether in tanks or in vehicles would be stored either in the underpass or so close to the carriageway that it would pose any threat to the safety of the carriageway as is described by Welsh Government. Our land and the underpass we seek are on land immediately adjacent to and fully visible from the public highway. Regular maintenance and inspection by Welsh Government can reveal if a covenant not to store flammable material was in any way not being observed. 14 I have not heard before in any of the engagement we have had with Welsh Government the suggestion it now makes that the provision of embankment walls rather than earth slope with planting would represent an important difference in the acceptability of those works in visual terms. I am not an expert in landscape or visual impact assessment, but I note that previous designs have variously included either an embankment wall or earth slope without any apparent reference to visual acceptability of one over the other. 15 I note the statement by Welsh Government to the effect that it cannot acquire replacement land. It is relevant to note here that the land to the North that we have mentioned is owned by Merthyr Tydfil County Borough Council. Part of the engagement to date there has been between Welsh Government and MMA has been over potential provision of replacement land and has included suggestion by Welsh Government that replacement land could be offered on the West side of Pant Road, being land also in the ownership of Merthyr Tydfil CBC. That land to the West, separated by a highway, could not be successfully included within MMA s site, whereas adjacent land to the North could be. 16 I have fundamental concerns that Welsh Government has not given adequate, or any, thought to how our business can be retained onsite during construction works. That matter is dealt with in WORK\ \v

4 part by Mr Mansell in his original proof, however I do believe that once constructed, if properly maintained that there is no reason why the new carriageway and MMA's existing operation cannot successfully coexist provided adequate steps are taken to protect our business assets during maintenance works so that problems previously experienced in this respect with the existing viaduct are avoided. WORK\ \v

5 BCA acquires SMA Vehicle Remarketing for 43m Fleet Industry News Page 1 of 2 08/05/2018 BCA acquires SMA Vehicle Remarketing for 43m 02/06/2015 BCA Marketplace has acquired car auction services group SMA Vehicle Remarketing for 43 million. The figure includes the repayment of existing debt, which BCA has funded through its existing cash resources. SMA posted earnings of 4.7m for the year to the end of October 2014 (before interest, taxation, depreciation and amortisation), on revenue of 37.2m. BCA has increased its existing 200m term loan to 275m, as well as a 100m revolving credit facility resulting in total facilities of 375m. Avril Palmer-Baunack, executive chairman of BCA said: "We are delighted to have completed this value-accretive acquisition so soon after listing BCA and to be delivering on our previously stated intention to pursue both organic and non-organic routes to accelerate growth of the

6 BCA acquires SMA Vehicle Remarketing for 43m Fleet Industry News Page 2 of 2 08/05/2018 auction exchange and support services. We welcome the SMA management team led by Bob Anderson to the BCA Group and look forward to working with them to continue to provide a preeminent service to our buyers and vendors". SMA Vehicle Remarketing is a UK independent car auction company with centres in Edinburgh, Kinross, Leeds, Newcastle and Birmingham.