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SAIC fined for not submitting its 2015 accounts

6K views 57 replies 18 participants last post by  Glyn Scothern 
#1 · (Edited)
SAIC finally filed its 2015 accounts on 14 December 2016

I had hoped to share with you details from their accounts. Instead I have to share the following information:

SAIC MOTOR UK HOLDING CO., LTD 06174862
SAIC MOTOR UK TECHNICAL CENTRE LIMITED 05437330
NANJING AUTOMOBILE CORPORATION (UK) LTD 05586826
MG MOTOR UK LTD 05779958
MG SALES CENTRE LIMITED 07416929

SAIC's UK subsidiaries shown above have not filed their accounts for year ending 31/12/15 yet. UK company law requires accounts to be filed within nine months of the year end and Companies House states that these accounts are now overdue. Not filing accounts on time is a red flag to accountants and credit reference agencies as they see it as the sign of a company not being properly managed. They also don't like the unknowns.

What happens to SAIC?
Each of the above five companies will be fined until its accounts are submitted. As it was late last year, the fines will be double the usual rates. The rates are:
Up to a month late £150 x 5 companies x 2 = £1,500
Between one and three months late £375 x 5 companies x 2 = £3,750
Between three and six months late £ 750 x 5 companies x 2 =£7,500
More than six months late £1,500 per company x 5 companies x 2 =£15,000
Source: https://www.gov.uk/government/uploa...358/GP5_Late_Filing_Penalties_v3.0-ver0.1.pdf

Failure to file accounts is a criminal offence which can result in directors being fined personally in the criminal courts but I do not envisage this situation occurring with SAIC.
 
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#48 ·
Now onto the SMTC accounts, Company number 05437330. Three observations:

1. Staffing levels fall to 263 including contractors
"Average employee numbers including short-term contractor numbers reduced by 24 from 287 to 263. The reduction in numbers was caused by the difficulty in recruiting engineers with the right skill sets. The headcount reduction has been the major factor leading to a 5% decrease in administration costs in the year to £30,878,000"
Presumably retention has been an issue as well or staff levels would have remained flat?
This statement does nail the assertion once and for all that some have that SAIC employs 500 people. The statement confirms that employee numbers do include contractors.

2. SUV for Chinese Market
"SAIC Motor has identified that there are gaps in its portfolio for sports utility vehicles and multi-purpose vehicles which is required to be filled very quickly to gain the benefit of this being the fastest growth area for automotive vehicles in China. To this end, SMTC UK has been requested to lead the design and engineering of one of a family of these vehicles."

3. Engineering architecture
"One of the major projects SMTC worked on was a global co-operation project with other SAIC motor technical centres to develop an engineering architecture strategy. The objective being to engineer more than one vehicle from a platform which would result in savings from carry-over parts and achieving a reduced engineering development time. The first of these programmes was completed during 2015. Work also started on the next platform."
 
#50 ·
Finally onto the MG Sales Centre, company number 07416929, quotes are taken from the Director's Report section.

1. Sales have fallen by a quarter!
"Sales in the year decreased by 25% to £2,599,596 from £3,468,881 in previous year. However, the margin achieved on the reduced sales has improved from 5% to 6% in the current year. To achieve this improved margin, spend on advertising has increased with the result the overhead costs of the business have increased by 7% from £201,237 to £215,735. The loss in the year has increased to £56,300 (2014: £29,809)."

2. It will all be better when...
In a statement which will cause considerable mirth in some quarters, the company's sole director Hao Wang states "The director of MGSC remains confident that vehicle sales will improve once the number of models has increased and the brand has become better known."
 
#51 ·
Personally I think the sales centre should drop the pretense of being a showroom and become purely a visitors centre. Longbridge is still something of a mecca, a visit to which usually encompasses popping into the Elephant House.

Instead of trying to peddle the current vehicles they should display historic MGs and use the centre to provide some relevance and background to their modern operations at Longbridge and context to their future direction. I know MG has the Piccadilly showroom to fulfil that role but it is small and exists purely to add prestige and satisfy marketing needs in China.
 
#52 ·
I can't see the point of a visitors centre either - that would make more sense at the dockside...see your new MG come in on the slow boat from China - how embarrassing.

In all likelihood I'd expect the bulk of the remaining site will be handed back to St Modwen in 2017. Some SMTC might remain until an alternative site is found for them in an area where they can recruit engineers as it seems they are struggling with that regard.

There is no link now between SAIC MG and the old MG Rover/Longbridge so there is nothing for a visitors centre. Most of the cars are wholly designed in China and 100% of them are built in China.
 
#53 ·
I can't see the point of a visitors centre either - that would make more sense at the dockside...see your new MG come in on the slow boat from China - how embarrassing.
:lol:
In all likelihood I'd expect the bulk of the remaining site will be handed back to St Modwen in 2017. Some SMTC might remain until an alternative site is found for them in an area where they can recruit engineers as it seems they are struggling with that regard.
This is very possible.

Most of the cars are wholly designed in China and 100% of them are built in China.
Not strictly true as the SMTC provides a fair amount of input into MG/Roewe vehicles and SAIC does manufacture (assemble) outside of China.
 
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