Lunar Caravans.....In Administration

[Dustydog]

There is no information on this Nick Marks or the company MWE. I tried the South African Google website and still no information. I cannot find any background on this individual or any engineering company that he may have managed. A bit of a concern?

Buckman, Yes.
Any idiot can set up a company!

A check shows that if a company in South Africa makes profit of a million rand a year that is only £54000. I wonder if the auditors were hoodwinked? Taking into account it is supposed to be a large engineering company in South Africa strange that there is no mention of it or the Nick Marks? I wonder how much background research was done by PC before printing the article? See https://suite.endole.co.uk/insight/company/12134294-mewa-industrial-holdings-limited Nicholas Marks is also British and born in 1967 and is only active in one company and is an accountant. Something does not smell right.

Don’t be too heavy on PC. They merely reported what is in the public domain. It is up to us mere mortals to investigate further and comment. That said, on the positive side , the new company has saved Lunar. Better than moving from Administration into Receivership and death :woohoo:

 

[ProfJohnL]

I wish Lunar automotive good luck, but as I have suggested previously in this thread the UK touring caravan market is over subscribed, and the reason the old Lunar failed as a lack of cash flow which basically boils down to failing to sell enough product to cover costs.

Lunar did have a range of products with an ISP, by being generally lighter than their competitors, which in today's market may be a trump card as cars also get lighter.

When a company goes into administration due to no cash funds, it's usually been brought about by suppliers who have lost confidence in the company. It's a doubly difficult job for a new owner who has no established pedigree in the field of building caravan or related products to negotiate new lines of credit with the suppliers.

Often it requires cash with order, even before the supplier will commit to producing new product. And it can take many months even years before suppliers will have gained enough trust in the new business before more normal 30/60/90days credit trading arrangements will be established

I well remember a time back in the 1980's when another caravan company was failing, and we would only let our delivery lorry leave our factory when the caravan company's cash for the order was in our bank.

 

[Dustydog]

Not sure where your figures come from Prof but according to the NCC the Caravan industry is doing very well lately?
https://www.thencc.org.uk/Our_Industry/statistics.aspx

 

[ProfJohnL]

Hello Dusty,

I haven't used any figures..

But looking at the NCC figures in
https://www.thencc.org.uk/our_industry/statistics.aspx

Show UK sales peaked in of 33k, in 2007, and then showed a steady year on year decline through to 2015 when only 20k were sold. the figure recovered in 2016 &17 to 24K.

But since then I have heard from industry insiders that sales have taken a significant fall over 2018 and into 19 possibly due to a uncertainty caused by Brexit.

The fact remains that a business that had a peak capacity of 33K units is only running at about 2/3 capacity and that is an expensive process for manufacturers. It would expose the weakest companies. This would certainly be a potential reason for Lunars difficulties.

 

[Dustydog]

Thanks Prof,
I hesitate slightly only because looking at just Bailey they turned out 6500 units in 2017 and 7500 in 2018. This year’s forecast is looking good too. But it is only a forecast.
I have also noticed in my travels this year a number of sites, CLs in particular are investing heavily in new additional pitches. Most are fully serviced. The Woosies who attended Thornbrook Farm Site in the spring will have noticed the new works which before we left allowed them to double the number of available FS pitches, an extra 20.
I am not convinced Brexit is a reason for catch all but I do concede new caravans seem to have increased rapidly in price over the last decade.
What I am interested in is the involvement of Hymer with Elddis. All seems very quiet on that front.

 

[Buckman]

Don’t be too heavy on PC. They merely reported what is in the public domain. It is up to us mere mortals to investigate further and comment. That said, on the positive side , the new company has saved Lunar. Better than moving from Administration into Receivership and death :woohoo:

Apologies I was not being heavy on PC but wondering if they got the info from the same source. We have had numerous individuals in the past like Green purchasing a company for £1, stripping all its assets, raiding the pension fund and then walking away. Time will tell.

 

[CustardAvenger]

...What I am interested in is the involvement of Hymer with Elddis. All seems very quiet on that front.

Me too; but I do know it seems to have affected Swift.

Erwin Hymer was bought out by the USA based Thor Industries, not long after Hymer took over Elddis et al. Thor Industries own Airstream and a bunch of other American RV companies. My immediate thought was that Swift were indirectly benefiting their UK competitor by importing Explorer Group's parent's product. It emerges recently that Swift quietly dropped Airstream from their line-up.

 

[Buckman]

Show UK sales peaked in of 33k, in 2007, and then showed a steady year on year decline through to 2015 when only 20k were sold. the figure recovered in 2016 &17 to 24K.

But since then I have heard from industry insiders that sales have taken a significant fall over 2018 and into 19 possibly due to a uncertainty caused by Brexit.

The fact remains that a business that had a peak capacity of 33K units is only running at about 2/3 capacity and that is an expensive process for manufacturers. It would expose the weakest companies. This would certainly be a potential reason for Lunars difficulties.

I am wondering if the drop in sales is due to young people not wanting to buy caravans plus the known fact that of you buy a caravan, you probably will have quality issues.

Also AirBnB is getting very popular as it is a cheaper option in a better location without the hassle and expense of owning, towing, insuring, storing a caravan. We have used AirBnB places over the past year and it has been like home from home. Last year when overseas we stayed in one with a lounge, kitchen, full bathroom and bedroom with double bed, plus our own BBQ and use of a pool all for £25 a night. In the UK similar cost us £60 a night so still cheap. Still prefer the caravan as we have 3 dogs.

 

[ProfJohnL]

Buckman has made some valid points,

A similar but more severe story played out in the 1990's . In late 1980's the UK touring caravan market was about 40K units but , by 2000 it dropped to about 20K and there were several consequences. Many of the smaller caravan manufacturers were swallowed up by bigger competition, It affected OEM suppliers also, and several of the big names changed their UK strategies. I know, as I was made redundant from one of them as it was closed down after being bought out by a competitor.

Historically the UK caravan market has usually been slower to react to national financial issues, but it seems it might be catching up and it certainly can be affected by new trends, like smaller cars not being able to tow such large caravans, Changes to the driving licence restricting what people can drive and tow, fuel costs. Site costs, etc.

 

[Craigyoung]

Just been reading about Luna caravans has been saved ;

https://www.lunarcaravans.com/news/lunars-future-looks-bright-under-new-ownership.

Good news

 

[Dustydog]

A bit previous Craig But you have been a la France B)

 

[Craigyoung]

Oh ! Only just read it !!

 

[otherclive]

Buckman has made some valid points,

A similar but more severe story played out in the 1990's . In late 1980's the UK touring caravan market was about 40K units but , by 2000 it dropped to about 20K and there were several consequences. Many of the smaller caravan manufacturers were swallowed up by bigger competition, It affected OEM suppliers also, and several of the big names changed their UK strategies. I know, as I was made redundant from one of them as it was closed down after being bought out by a competitor.

Historically the UK caravan market has usually been slower to react to national financial issues, but it seems it might be catching up and it certainly can be affected by new trends, like smaller cars not being able to tow such large caravans, Changes to the driving licence restricting what people can drive and tow, fuel costs. Site costs, etc.

Just back from a few days in Pembroke and quite surprised at the number of motorhomes and campers compared to caravans. The couple next to us (mid fifties) had sold a van six months ago then bought a new motorhome that had so many issues they were granted a refund. They didn’t want to return to caravanning so bought a brand new top spec VW based camper, which they love. So clearly times are changing and the trend for lighter cars must be having an effect too.

 

[Raywood]

We have just come back from two weeks away and I must agree that the number of motorhomes is increasing. It is possibly relevant that the only caravan builder who does not also produce motorhomes is Coachman, so the others are clearly keeping a foot in both camps.

 

[otherclive]

We have just come back from two weeks away and I must agree that the number of motorhomes is increasing. It is possibly relevant that the only caravan builder who does not also produce motorhomes is Coachman, so the others are clearly keeping a foot in both camps.

And campervans seem to becoming very popular too.

 

[CustardAvenger]

We have just come back from two weeks away and I must agree that the number of motorhomes is increasing. It is possibly relevant that the only caravan builder who does not also produce motorhomes is Coachman, so the others are clearly keeping a foot in both camps.

And campervans seem to becoming very popular too.

A week in a VW campervan made us buy a caravan! It's super annoying having to pack all your crap away to go anywhere. As a day van or for overnighting its great and definitely more flexible; but the cost of entry for a motorhome or campervan is so much more than a caravan.

 

[JTQ]

We have just come back from two weeks away and I must agree that the number of motorhomes is increasing. It is possibly relevant that the only caravan builder who does not also produce motorhomes is Coachman, so the others are clearly keeping a foot in both camps.

That was pre the 1st September 2019 purchases no doubt?
Since then the VED for these motorhomes costing over £40k has gone up massively, which IMO will cripple the UK builders unless the government reverses this. They, the government seems to be having enough to get wrong at the moment, to worry about any decimation to that industry.

 

[Raywood]

We have just come back from two weeks away and I must agree that the number of motorhomes is increasing. It is possibly relevant that the only caravan builder who does not also produce motorhomes is Coachman, so the others are clearly keeping a foot in both camps.

That was pre the 1st September 2019 purchases no doubt?
Since then the VED for these motorhomes costing over £40k has gone up massively, which IMO will cripple the UK builders unless the government reverses this. They, the government seems to be having enough to get wrong at the moment, to worry about any decimation to that industry.

Most foreign motorhomes are also over £40,000 so VED will hit both so it could simply reduce overall sales.

 

[otherclive]

We have just come back from two weeks away and I must agree that the number of motorhomes is increasing. It is possibly relevant that the only caravan builder who does not also produce motorhomes is Coachman, so the others are clearly keeping a foot in both camps.

That was pre the 1st September 2019 purchases no doubt?
Since then the VED for these motorhomes costing over £40k has gone up massively, which IMO will cripple the UK builders unless the government reverses this. They, the government seems to be having enough to get wrong at the moment, to worry about any decimation to that industry.

Most foreign motorhomes are also over £40,000 so VED will hit both so it could simply reduce overall sales.

Cannot really recall seeing even a camper van at £40k.

 

[Dustydog]

We have just come back from two weeks away and I must agree that the number of motorhomes is increasing. It is possibly relevant that the only caravan builder who does not also produce motorhomes is Coachman, so the others are clearly keeping a foot in both camps.

That was pre the 1st September 2019 purchases no doubt?
Since then the VED for these motorhomes costing over £40k has gone up massively, which IMO will cripple the UK builders unless the government reverses this. They, the government seems to be having enough to get wrong at the moment, to worry about any decimation to that industry.

Most foreign motorhomes are also over £40,000 so VED will hit both so it could simply reduce overall sales.

Cannot really recall seeing even a camper van at £40k.

:silly: Let me know where they are less than £40k. I’ll buy one B)

 

[Brasso530]

I agree that more and more campervans and motorhome are getting very popular on site,but I was very surprised on our holiday this year.We went to same place,same weeks and couldn't believe how full it was with mainly caravans,I would say 90% ish.Every size,age and budget.Good to see

 

[otherclive]

I agree that more and more campervans and motorhome are getting very popular on site,but I was very surprised on our holiday this year.We went to same place,same weeks and couldn't believe how full it was with mainly caravans,I would say 90% ish.Every size,age and budget.Good to see

We have just returned from 7 days at Bracelands and the majority of caravans were on summer seasonal pitches and surprisingly few were being used. But the motorhome, camping and campervan community were buoyant.

We are considering a summer 2020 seasonal as an alternative option to selling the caravan.

 

[Raywood]

You can get under £40k but only just.

Elddis/Compass CV60 Price £38,599 Base vehicle Fiat Ducato Length 5.99m MTPLM 3500kg

 

[otherclive]

You can get under £40k but only just.

Elddis/Compass CV60 Price £38,599 Base vehicle Fiat Ducato Length 5.99m MTPLM 3500kg

Thanks that’s more than a campervan and less than a motorhome quite a useful sized unit and not ridiculously difficult to take places and park.

 

[Guzzilazz]

Looking in the latest CCC mag, the increased VED is first year only, and could be over £2k... Following years are the same at £265