Admiral agrees Confused.com sale to Uswitch owners RVU

Admiral Group plc has reached an agreement to sell its Penguin Portals Group which comprises online comparison portals Confused.com, Rastreator.com and LeLynx.fr as well as the Group’s technology operation Admiral Technologies to ZPG Comparison Services Holdings UK Ltd (RVU).

The £508m deal will also see Admiral sell its 50% share of Preminen Price Comparison Holdings Ltd. MAPFRE will also sell its 25% holding in Rastreator and 50% holding in Preminen as part of the transaction.

David Stevens, Group CEO of Admiral Group commented, “The purchase of the UK and European comparison businesses by RVU offers a positive outcome for our customers and our employees, and also provides good value for our shareholders.”

He continued, “Admiral will continue to focus on what Admiral has consistently done well, namely designing and underwriting good value mass market financial service products. Comparison will continue to be Admiral’s most important distribution channel in Europe and we look forward to continuing to work closely with Confused.com, Rastreator and LeLynx as they continue to grow and strengthen the customer offering.”

Tariq Syed, CEO of RVU said, “Penguin Portals offers an exciting opportunity for us to expand our consumer brand portfolio and geographic reach. With its focus on insurance, Confused.com perfectly complements Uswitch’s existing expertise in the home services category, and, with equally established offerings in other countries, we have an opportunity to help even more consumers find the right deals for their needs.”

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A new dimension

To many of us 3D printing is something that effects someone else doing something else – but an eye-opening podcast with expert Paul Croft explains why that couldn’t be further from the truth.

In fact, if you’re working in the automotive aftermarket sector it’s highly probable that this technology will prove as disruptive as any you’ve known, with everything from tooling to key-to-key times to the environment being impacted.

‘If you’ve not got your eyes glued on this and you’re in a leadership position with a mandate to be looking 12 months ahead then you need to be all over this right now,’ Paul said.

As we’ll discover, the benefits of widespread 3D printing in the repair sector could include:

  • Lower claims costs
  • Fewer scrappages
  • Repair over replace
  • Shorter key-to-key times
  • Lower inventory costs
  • Less environmental impact

What is it?

3D printing is the common name, but the technology is actually additive manufacturing as it works by building things in layers.

Paul said, ‘It’s made up of seven groups of different technology. Some are made by melting plastic very accurately, some are made by fusing metal powders together, some are made by melting wires or using light to cure a vat of resin to actually grow an object out of things, ala Terminator 2.

‘The amazing thing is that the technology has actually been around for 30 years now. It’s been through the hype cycle and what is exciting for me is not only how quickly it’s developing in terms of materials, hardware and software, but the business cases that are being generated and the social impact that it can have.’

To make both points, he cites individuals printing face masks in their bedrooms and businesses reporting a return on investment in a matter of days.

‘That’s not an exaggeration’ he said.

Background

Paul knows what he’s talking about as he’s been in the centre of this burgeoning sector for the last seven years. He was first introduced to 3D printing in 2013, when he met the founders of Dutch company Ultimaker. The company is now a global leader in 3D printers, software and materials, but was just a dozen people when Paul met them. However, recognising the potential, he agreed to launch their products in the UK through Ultimaker GB.

Paul also established 3DGBIRE to offer aftersales support to Ultimaker customers, and under that brand began introducing a much wider range of complementary 3D technologies to the UK.

And there is yet one more string to his bow. Coming from a family of teachers and with a passion for education himself, he set up CREATE (Community, Reliability, Education, Access, Teachability and Economics) to introduce 3D technology to learning establishments around the country, from colleges to primary schools.

Education

He believes it’s the next generation, those not used to the old ways of doing things, will be able make the most of this innovative technology, while the technology itself can reignite a passion for learning in even the most disengaged pupils.

Paul explained how one demonstration finally piqued the interest of the most disinterested boy in the class, who then went home and designed the software to print a bedroom door handle to replace his broken one.

‘That’s the Utopia of education,’ he said. ‘He had been disengaged but a switch flicked and he took ownership of his own development. The technology showed him that he’s in control of his own destiny and that education is about getting the knowledge needed to get there. He was like a different person – in maths and English and science, too.’

This is a micro example, but on a macro scale it could be a lesson for everyone in the automotive industry, where the skills crisis remains severe; because there is no doubt that when it comes to attracting new talent, the greater the technology the greater the appeal.

If 3D printing can help to draw in a new generation then that alone might make it worthwhile, but its advantages go far beyond advertising.

OEMs

For large organisations with repeatable parts or challenges, the benefits of 3D printing are potentially enormous. For example, one airline had been spending 20 minutes spraying tyres after a service, while also bearing the incremental costs of taping up surrounding areas. However, 3D technology helped them create a plug the same size as the wheel, cutting the job time to one minute and eliminating the use of tape altogether.

These benefits have not been lost on car makers either, with almost every vehicle manufacturer now using 3D printing technology in its production process. General Motors has just opened a new site to ‘productionise’ 3D printing, while Renault announced its new ‘Re-factory’, dedicated to sustainable production, will also include a 3D printed spare parts service.

But like many technologies, the greater benefits could come when it’s in the hands of those of the frontline.

Paul said, ‘The power of the technology is contingent on the user. You’ve got a new tool set which wasn’t available 10 years ago. If you think about how much difference a good tool makes in the hands of the right user, then to not be looking at 3D printing right now seems to be naïve.’

He pointed to an example at Volkswagen Spain, where operatives were enabled to make custom-fit tooling to improve the process of attaching letters to the backs of models. Apart from time and tooling cost savings of 91% and 95%, there were ergonomic benefits of operatives handling light plastic tools instead of heavy metal ones, while overnight printing ended long delays waiting for new shipments from the Far East.

Repairs

When this practice is transferred to the automotive aftermarket, the results could be immediate and immeasurable.

Paul said, ‘Let me give you an example: the team was on site the other day and they found a Fiesta light cluster in the bin. It was in the bin because of two small plastic brackets at the back of it. Using 3D printing it took us minutes to model something up on the software, and because it was a small part it only took another few minutes to print. That cost less than £5 compared to the £175 it would have cost to replace. Multiply that by the number of times something like that happens in repair centres across the country.’

The benefits are obvious, with bodyshops also able to manage on lower inventories. Environmentally, logistics will be greatly reduced and with more parts available quicker and cheaper, repair could begin to dominate replace.

Paul said, ‘How much do we put into landfill for the cost of replacing a bracket? How many cars are being scrapped because a part is obsolete when actually you could just make that part?

‘Normally this technology takes a long time to filter down from OEMs, but 3DGBIRE is helping UK customers get ahead of the curve, so let’s look at the low hanging fruit. There are a lot of easy wins that are there and can make your business more sustainable, improve cashflow and more agile.’

Accessibility

As with most technologies, 3D printing is as limited or otherwise as the person using it. It might sound too complicated and expensive to get involved in, but a very basic 3D printer that can be used at home and for familiarisation purposes can cost as little as £200.

To start printing parts that can be used commercially would require an investment of nearer £2,000.

Paul said, ‘I know people will be reticent because they don’t think the change is coming, but I can tell you categorically that the change is coming, it’s already happening. But you don’t need to be in a cash-rich environment to get on this journey; this technology is accessible, all you need is the mindset and a little bit of local expertise, and away you go.’

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No impact on incident frequencies from three-tier system

The three-tier system of pandemic restrictions had no impact on motor incident frequencies whilst Lockdown 2.0 resulted in a 10% drop off according to S&G Response data.

The automotive solutions provider has been tracking claims throughout 2020 seeing the greatest reduction in volumes in April, during Lockdown 1.0, when it experienced a 70% fall.

S&G suggests the 60% difference in motor claims volumes between the two nationwide lockdowns evidences an increase of drivers on the roads during the second lockdown – due to a combination of less stringent restrictions and potentially the public’s lessening patience regarding the virus.

However, Lockdown 2.0 witnessed the greatest behaviour changes, showing how the percentage of motor incidents in each hour period during the day lowered by around one per cent with a large spike between the hours of 10am and 12pm and again – to a lesser degree – between 2pm and 4pm.

Sean Harper, Supply Chain Manager, S&G Response said, “We have shared data and insights on a level that we would have all thought impossible in February. We all needed each other before Covid-19, but we tended to focus on what divided us or what we disagreed about. As an industry we have since recognised that we were part of one eco-system and had to work together.

“Our already strong relationships with repairers have strengthened in a ‘blitz like’ spirit of working together through the pandemic. The collaboration of all parties previously working independently somewhat has been fantastic.”

The impact of the newly introduced tier-four across London and the South East is yet to be evidenced.

The full data set can be found by clicking below:

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Copart keeps moving throughout 2020

Copart has reassured its customers that it remains ‘business as usual’ following the announcement of new tier 4 restrictions and is continuing to press ahead with developments.

The online vehicle remarketer has remained operational since the first Covid-19 lockdown back in March, having been quickly deemed an essential service to the insurance sector.

Throughout 2020 the business has too pushed forward with several new tech projects including the Copart Transportation App; Owner Connect SMS Service; and enhancements to its patented online auction platform – making the customer journey quicker and easier than ever before.

Investment has also been made in land, fleet, and technology.

The business now operates 400 vehicles and recently announcing major expansion plans for its Bristol Operation Centre, making the location set to become a 63-acre Super Centre for the South West, alongside other expansions in Wisbech and York and continuous improvements at its other existing Centres.

Jane Pocock, managing director of Copart UK & Ireland, said, “Since the start of the pandemic we have continued to adapt and improve our processes and technology to ensure that our customers can be served swiftly and safely.

“Our customers have access to a completely contactless digital journey – from collection and delivery apps to online payment options – and should they need to visit our Operation Centres, they can be confident that we have all the necessary safety and social-distancing measures in place to protect them.”

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R-M’s AGILIS set to shake up the industry

R-M has launched AGILIS in the UK – a basecoat system developed with sustainability in mind. The product exceeds all global VOC requirements, achieving the lowest VOC content in the industry.

Following a global launch in September, AGILIS is currently being introduced to UK customers that recognise the need for faster processes, greater profitability and sustainable products and solutions. The products eco-credentials are independently certified by TÜV SÜD and REDcert2

While other R-M paint lines such as ONYX HD will continue to be an active component of R-M’s portfolio, AGILIS is a completely new brand proposition. Eleven years in development, the basecoat system offers cutting-edge pigment technology and an application process that is so fast and easy R-M believes it is ‘set to change our industry’. 

R-M claims that AGILIS wet-on-wet application and AMPLIFIER product helps bodyshops to increase performance by reducing process times up to 50% and is willing to prove it – ARC360 got to see the speed and ease of application first-hand at a pre-launch product event at ITAS in Milton Keynes with a side-to-side demonstration of AGILIS and a competitor product.

Industry insiders describe AGILIS as ‘game-changing’ and have been particularly impressed by AMPLIFIER, a multi-purpose tintable product, which can be tinted with ready-mix paint, reducing waste to near zero.

Luke Stafford, sales manager – new business, Automotive Refinish – BASF plc, said, ‘We’re in a moment where, as a society, we need to do more with less – reducing waste and fossil fuel consumption while increasing productivity.

“AGILIS and our unique AMPLIFIER product provide the opportunity to achieve this within the refinish industry and our signature solution APPROVE allows businesses to promote this to customers, insurers, local authorities and other key stakeholders.

“At R-M, we’re all about providing the best solutions without trade-offs, so AGILIS is not just the greenest, but also the fastest paint system on the market right now.’

The brand new, waterborne technology is supported by what R-M classes as ‘next level support services’ including a truly digital infrastructure.

For more information click here.

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Admiral goes extra mile for AutoRaise

AutoRaise insurance partner Admiral Group has extended its support of the industry charity through another financial contribution.

Following a call to the insurer and work provider sector for emergency support, Admiral Group agreed to support the initiative with a ‘sustainable industry’ contribution as part of the AutoRaise Stepping Up campaign.

Rob Harper, head of claims business performance at Admiral Group, said, “We felt it was incredibly important to support our partnership with AutoRaise at a critical time. We knew they hadn’t been able to raise funds in the usual way this year and as a leading motor insurer, we have always recognised the importance of their work to sustain the vehicle repair industry.

“It was a really easy decision to be honest and I hope that more insurers increase their funding contribution in the new year”.

In a further demonstration of support, Admiral’s Extra Mile initiative has been created as a fundraising initiative for Admiral Group employees and its repair network.

Ian Phillips, claims engineer manager, said, “We are absolutely delighted to be supporting AutoRaise by raising funds with our Admiral’s Extra Mile initiative. Anyone wishing to show their support can donate and those wishing to take on the challenge can donate £10 and walk or run 20, 35 or 60 plus miles throughout January.

“We are already off to a good start with entrants and looking forward to many more. Signups for the challenge will stay open right up until the last weekend of the January. Here’s to a healthy and positive 2021 for all.”

Bob Linwood, AutoRaise CEO, added, “Rob and the Admiral Group team have always been ultra-supportive of AutoRaise and we were delighted to receive this extra contribution during a difficult time for the charity.

“The fact that Admiral Group want to do even more through their brilliant ‘Extra Mile’ event shows true partnership.”

Anyone wishing to show support can donate here.

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Esure responds to AutoRaise ‘call for action’

Esure, partners of AutoRaise since its inception, has responded to the charity’s call for emergency funding with an additional contribution on top of its annual commitment.

AutoRaise, like all charities and business organisations, has been significantly impacted by the Coronavirus pandemic this year and has been unable to carry out some of its main fundraising activities, specifically the AutoRaise REAL Rally.

This prompted an initiative to engage with the industry’s leading insurers and work providers and understand who would be interested in committing their support.

Richard Hughes, head of engineering and network (claims) at Esure said, “Esure originally stepped up and partnered with AutoRaise because we knew our network needed help to survive. The average age of a technician is reported to be between 45 and 50 years old, a very worrying statistic.

“The simple fact is that the industry will not be viable in the future if it doesn’t attract young people and train them to repair the modern motor vehicle.

“The industry needs AutoRaise to continue their brilliant work and to play their part in getting more young people into apprenticeships in our industry. Why wouldn’t anyone involved in our sector not want to support that?”

Bob Linwood, AutoRaise CEO, said, “Esure have been a brilliant supporter for AutoRaise from day one. Kevin Moran continues to serve as one of our Associate Trustees and the Esure team have always attended our events, along with the Sheila’s Wheels pink Cadillac in many cases.

“Myself and the Trustees are overwhelmed by this latest demonstration of wanting to help the charity – Esure epitomise the level of support we hope for from our insurer partners and we look forward to continuing to develop that partnership as we move forward.”

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Investment firm backs ABL 1Touch management buyout

Investment firm Mobeus has invested £9.5m to support the management buyout of ABL 1Touch accident repair group.

The transaction sees Mobeus back the incumbent ABL 1Touch management team, who have built the group to a 13-site network across southern England. The team will be supported by experienced industry figure Bill Duffy, previously of Nationwide Autocentres, who has joined the board as non-executive chair.

ABL 1Touch has doubled its turnover during the last three years and, following the buyout, will continue to expand its regional footprint supported by Mobeus, as it looks to almost double the number of operating sites during the investment term.

The transaction was originated and led by Freddie Bacon, who worked on the deal with Mobeus partner Richard Babington and Matthew Gordon-Smith.

Freddie said, “Our investment will enable ABL 1Touch’s ambitious management team to take the business to the next stage of its growth trajectory. Jonathan, Graham and Duncan have impressive forward-thinking plans and we are delighted to be backing such a leading service provider in the industry.”

Mobeus, the SME investment business, describes ABL 1Touch as ‘a tech-enabled automotive accident repair group’.

For more about Mobeus click here.

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New year, new hopes

Diversification was the key word of the final ARC360 webinar for 2020 when bodyshops were encouraged to go out and find new work rather than relying solely on existing providers.

Lee Johnson, managing director of LD AutoVogue Accident Repair Centre in Norwich, urged bodyshops to make the most of their facilities – and their vast investments in training and tools – by seeking out new revenue streams to support existing ones.

He said, ‘We still need our work providers, of course we do, but volumes are down and will be for a while. Will they ever come back to what they were? I’m not sure. Bodyshops need to diversify and not be so reliant on insurance work. We need to look for other revenue streams because there are opportunities out there.

‘We haven’t got time to sit back and rest on our laurels now. We have to keep looking forward and keep changing. Instead of waiting for the work to come to us, we should get out there and get it or we won’t be here.’

That go-forward attitude is part of the reason he has invested in ADAS equipment recently, and from the first week of January plans to bring inhouse all the jobs he is now having to outsource.

People

However, investing in technology is only half the battle. Fellow panellists Paul Sell, insurance claims consultant & director, Service Certainty and Richard Taylor, European business development director, asTech, agreed that good technology without good people is useless, and the reverse is also true.

Paul said, ‘The purpose of technology is not to replace the experts, just to make their jobs easier and get more from them. For me, technology is about providing the experts with all the information they need to make the best and quickest decisions. That’s what we’ve been trying to do this year, and we’ve shown we can reduce movement and cost, while also getting the best out of people.

Richard agreed: ‘We’re living in a tech-driven world, but the tech is there to assist people.’

However, he warned of potential problems coming down the road as the technology within vehicles could leave behind not just the technician, but also the tooling they are using. Richard warned that this could be a particular concern around ADAS and diagnostics.

He said, ‘The technology scares me a little, because people believe in Utopia while Utopia doesn’t exist.’

He warned of a basic lack of knowledge creating liability issues around using parts no longer fit for purpose and suggested it will be the supply chain’s responsibility to protect the repairer.

He said, ‘I’m no expert, but the lack of awareness will be one of the biggest impacts in the next few months. It’s our job to make sure that when people plug in a device they are 100% sure it’s going to do the job properly.’

Data

Meanwhile, the webinar also collated the headline data from various industry studies carried out recently to assess the state of the market.

According to TrendTracker, the UK vehicle body repair market has fallen from a total value of £4.87bn in 2019 to £3.57bn this year, a drop of £1.3bn. Its research also found that the average price of a repair (across all streams) in 2019 was £1,123, up from £786 in 2012.

Further, Audatex Solera predicted a 30% fall in claim notifications via its system this year, while CAPS found that unique claims fell from 74% of pre-pandemic levels in October to 69% in November, with supply chain transmissions down from 70% to 68% in the same period.

A live online ARC360 poll backed up those numbers, with 92% of respondents claiming volumes had remained static (24%) or gone done (68%) in the past fortnight.

Optimism

Faced with these figures, it would be easy to assume the second national lockdown has deflated a market already short on oxygen. In fact, further research from TrendTracker found that in September 33.9% of bodyshops were ‘very confident’ of withstanding the impact of Covid-19, while 50% were cautiously confident, while a second ARC360 poll during the webinar found 92% of attendees had some level of confidence ahead of 2021.

Paul said, ‘Every year there has been something our industry has had to adapt to. At the moment there are lots of things happening at the same time and it’s very difficult to predict what’s coming, but this industry, from bodyshops to insurers, has always found the answers.’

Richard concluded, ‘2020 has been a massive learning curve but if Covid had taught us one thing it’s taught us to take stock of where are and prepare for what’s coming over the hill. We’re super excited about 2021.’

ARC360, in association with I Love Claims, is supported by corporate partners BASF, BMS, Copart, EMACS, Entegral, Enterprise Rent-a-Car, Mirka, Nationwide Vehicle Recovery Assistance, S&G Response, Sherwin Williams and CAPS; partners asTech, The Green Parts Specialists, Indasa, Innovation Group and Prasco; and strategic partners AutoRaise; NBRA; RepairTalks; and TrendTracker.

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Redde Northgate reports ‘encouraging momentum’

Redde Northgate plc has reported ‘encouraging momentum’ in its interim results for the six months ended 31 October 2020 with the accelerated integration of FMG Repair Services (FMG RS) highlighted.

The report points to how the integration of FMG RS has been a key focus following the acquisition of Nationwide Accident Repair Services at the beginning of September, both in terms of securing the supply chain and in managing volumes between external insurer customers and internal work referred from other Redde businesses.

The report states that ‘the Board is pleased with progress to date’.

It reads: ‘Initial trading has, as expected, been loss-making whilst the integration is completed and the 90-day plan executed.  We have now secured over 95% of the supply chain and are continuing discussions with many prior and future customers to maximise external revenues.

‘The Group remains confident that the acquisition will be earnings enhancing in the first full financial year of ownership.’

Martin Ward, CEO of Redde Northgate, said in the statement: “We have commenced the integration of FMG RS which broadens our service proposition and capabilities in repairs and, in October, building on Redde’s expertise, we launched our accident and incident management product to Northgate customers. We have had a good early response to this and are confident it will be a source of revenue growth for the Group.”

He continued, “We can clearly see the impact of COVID-19 in this set of results, particularly in Redde where accident volumes were depressed in the first quarter. However, these have significant potential to increase when road traffic volumes and incidents revert back closer to historic norms.  Meanwhile, the buoyancy in used vehicle markets, particularly in the UK, has led to higher disposal profits, and the Northgate businesses have also both benefitted from an increase in VOH since year-end such that VOH is now above pre-COVID levels.”

The report also highlights the business has continued development of contract hire as a source of vehicle funding with ‘substantial new contract hire credit lines approved by several lenders in the period thus expanding provision to LCVs in the Northgate fleet. £6m of these credit lines has already been utilised.’

FMG RS is the trading name for the Nationwide Accident Repair Services business and assets acquired on 4 September 2020.

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