Caterham Cars Sold!
Discussion
I was going to post this on the Caterham forum but thought it may be of a more general interest?
I don't know what else to say other than go to
www.caterham.co.uk
for the full story!
To say I was quite suprised would be an understatement!
I don't know what else to say other than go to
www.caterham.co.uk
for the full story!
To say I was quite suprised would be an understatement!
As it's a little hard to find:
Didn't see that coming!
Caterham said:
Immediate Release: 16.00 Thursday 13th January 2005
A management buy-in (MBI) team led by ex-Lotus General Manager, Ansar Ali, and backed by Corven Ventures, the private equity arm of the consulting and corporate finance firm Corven Group, has bought Caterham Cars for an undisclosed sum.
Caterham is the pre-eminent sports car manufacturer in its sector producing lightweight, affordable road and racecars with supercar performance. The company’s heritage stems from the legendary Lotus Seven sports car acquired from Lotus Cars in 1973. Over the last 30 years Caterham, headed by its founder Graham Nearn and subsequently by his son, Simon, have successfully developed the Caterham Seven. Today, the company sells more than 500 cars a year in over 15 countries, generating a turnover in excess of £15 million.
In October 2004 Caterham launched its exciting new Caterham Seven CSR model, which draws its power from two bespoke high performance engine variants from Cosworth Racing. The CSR not only establishes a new benchmark in handling and performance, but also renews an alliance with racing legend Cosworth, who return to the road car market after a ten-year absence.
The MBI team will bring sector experience to compliment the existing Caterham management. Ansar Ali as Managing Director is joined by Gideon Wigger, another ex Lotus manager, as Operations Director, and by David Obertelli as Finance Director. James Basden (founding Director of Corven) and Mark Edwards (Director of Corven Ventures), both of whom have extensive automotive experience, will join the board as Non-Executive Chairman and Non-Executive Director respectively. Outgoing Caterham Cars Managing Director, Simon Nearn, will continue to assist the new management team on a consultancy basis. The combined management will seek to underpin the fundamentals of the business and drive the Caterham brand forward to meet customer demands whilst enhancing profitability.
Ansar Ali commented, “This is a unique opportunity and one that places on me a responsibility to ensure that we remain true custodians of the Caterham legend and brand. I am looking forward to the challenge of harnessing the inherent capabilities of the business – its employees, suppliers and partners - in order to continue to deliver sector leading products, outstanding customer value and financial returns to our shareholders and partners.”
Simon Nearn commented, “For a number of years we have been seeking inward investment to support the ever spiralling cost of new product development. I am delighted to announce the conclusion of this process, which sees the arrival of a highly experienced new management team, backed by a level of financial commitment that will ultimately enable the Caterham Brand to realise its full potential.
“Caterham Cars has until now been a strictly family business and although it has grown significantly in recent years, a shared sense of purpose and an infectious enthusiasm for the product has driven us as a team. Ansar and his colleagues not only recognise this dedication, but also share our enthusiasm for the Seven. They are ideally placed to begin the next chapter in the Caterham story.”
Chairman and founder Graham Nearn added, “It is clearly an emotional time for many of those who have contributed to the success of the business over the last four decades, and it is both reassuring and fitting that the new owners of the business should come from Lotus, where of course the Seven story began. That this should happen at a time when our historic links with Cosworth are being renewed seems particularly appropriate”.
Hi-res photos of the new Caterham Seven CSR are available at www.caterham.co.uk/press
Didn't see that coming!
KITT said:It always amuses me when Press Releases and the like talk of turnover. Turnover means nothing really - it's profit that is important.
generating a turnover in excess of £15 million.
Still, shocking news. But not as shocking as the TVR buyout, because as far as I can make out from the Press Release it is a buy-in rather than a buy-out, which implies that it will be business as usual but with more investment.
a duck.... didnt expect that....I suppose it can only be a good thing in the long run but still it does come as a shock when it's out of the blue like that.
It does say that Simon Nearn will still be involved as a consultant, aka Peter Wheeler, so hopefully we will have some 'original' Caterham ideas with more money behind them and even that illustrious new model they started a few years ago?
Lets hope that they develop the narrow bodied 7 too as I don't like, or need, an SV/CSR!
We shall see..........
It does say that Simon Nearn will still be involved as a consultant, aka Peter Wheeler, so hopefully we will have some 'original' Caterham ideas with more money behind them and even that illustrious new model they started a few years ago?
Lets hope that they develop the narrow bodied 7 too as I don't like, or need, an SV/CSR!
We shall see..........
JonRB said:Turnover shows relative interest in a company. It gives people that don't know much about a company an idea of its size, something which profit doesn't do. For example, a car company with a turnover of c.£1m would suggest it's quite a small company, whereas a profit of c.£1m wouldn't distinguish between a small company that is making a large profit, or a large company that's doing badly.
generating a turnover in excess of £15 million.
It always amuses me when Press Releases and the like talk of turnover. Turnover means nothing really - it's profit that is important.
L100NYY said:
It does say that Simon Nearn will still be involved as a consultant......
Buy outs always say that the previous boss will stay involved. It's done to make customers/suppliers/staff feel that there is some stability. In practice it's never a good thing, the newly rich seller loses interest, or complains that the new owner is ruining their baby. The buyer feels that the old owner is holding things back. I'm surprised at just how public and rapid Peter Wheelers departure was, but I suspect this will be no different in the long run.
BTW I said something similar when TVR was sold.
Simon
JonRB said:
Turnover means nothing really - it's profit that is important.
I disagree.
Profit is what companies are after at the end fo the day.
However, profit comes from turnover, and it is turnover that takes time to build. It may well be very easy to increase profit on 15 million turnover from 5% to 10% - but it would be very difficult to leave profit at 5% and double the turnover.
So, if you're looking to buy a company, you might well look for one that already has built a good turnover, but which has low profits (so you might pick it up for a good price) because it being badly run (or whatever) but has the potential to increase efficiency and thus make more profit.
Make sense?
Yours,
SJHJ
>> Edited by Joe911 on Thursday 13th January 21:36
JonRB said:An example of a buy-out is where somebody has a controlling stake, which you buy from them, and so they no longer have it. A buy-in would be where the person with a controlling stake sells you some of their share, but not all.
I'm not entirely sure I understand the different between a buy-out and a buy-in.
Can anyone enlighten me?
v8thunder said:
Well at least Ansar Ali will respect the cars Lotus heritage, and at least it hasn't been snaffled up by some carmaking giant after a portfolio who'd just soften it up to sell to the Yanks.
It'll be very interesting to see where Caterham go next. I can't see them going more mainstream, maybe they'll develop along a more outlandish path
rubystone said:
True you cannot ignore turnover, but I think the main point is that turnover is always quoted as a headline figure, with profit often left out of the statement. Equally no-one should invest on the basis that a company makes a poor profit on large turnover!!!!
On the contrary - many companies displaying this type of trading make very good investments from a purchasers point of view. Stated profits are always after the directors have been paid and therefore give no real indication of the 'actual' profit. Without looking at a full set of accounts - the profit figure is pretty meaningless - turnover, however, cannot be fiddled like this.
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