Marshall Motor Holdings builds on H1 record performance
Car dealership firm Marshall Motor Holdings built on the record performance seen in the first half of the year with improvements in the second with revenue growth and acquisitions, but remains cautious about the outlook in the car industry following the EU referendum.
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The financial performance of the company for the year ended 31 December, is anticipated to be “comfortably in line” with expectations, with contributions from the acquisitions of Ridgeway Garages in May and SG Smith Holdings in November.
Marshall Motors said: “Following the UK referendum on EU membership and the resultant continued economic uncertainty, the board remains cautious on the UK vehicle market in 2017 and concurs with current industry forecasts for a decline in the UK market for new vehicle sales.
“Nevertheless, as a result of the strategic acquisitions of SG Smith and Ridgeway, the group remains well positioned and continues to seek to drive further growth in its profitability and return on capital, supported by a balanced portfolio of brands, attractive geographic locations and excellent brand partner relationships.”
The retail business showed “strong” growth in revenue and profitability, including contributions from both SGS and Ridgeway.
The like-for-like growth in sales of new vehicle units reported in the first half of the year were strengthened in the second half, although margins remained under pressure.
Like-for-like sales of used vehicle units were marginally above the previous year.
Strong like-for-like growth in after-sales revenues and margins continued throughout FY16.
The vehicle leasing business performed in line with expectations, with a fleet of 6,192 units, this was 2.7% ahead of the previous year due to a robust car market.
The company’s balance sheet remains strong, underpinned by over £100m of freehold and long leasehold property.
Unallocated central costs during the year were “materially in line with expectations” as it incurred £1.9m of exceptional costs in the first half of the year, followed by further exceptional costs in the second half related to the ongoing integration and reorganisation of the Ridgway acquisition.
Shares in Marshall Motor Holdings were up 2.57% to 141.55p at 1128 GMT.