TIDMMMH
RNS Number : 2937W
Marshall Motor Holdings PLC
18 August 2015
18 August 2015
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
Unaudited interim results for the six months ended 30 June
2015
Strong results from both Retail & Leasing
Marshall Motor Holdings plc, one of the UK's leading automotive
retail and leasing groups, is pleased to announce its unaudited
interim results for the six months ended 30 June 2015 (the
"Period").
Financial highlights
-- Revenue increased by 16.0% to GBP632.5m (H1 2014: GBP545.4m)
-- Profit before tax up 9.8% to GBP10.5m (H1 2014: GBP9.5m)
-- Earnings per share of 19.7p
-- Maiden pro rata interim dividend of 0.58p per share
-- Strong balance sheet
Operational highlights
-- Strong trading performance driven by contributions from
recently acquired businesses and continued organic growth
-- New car unit sales up by 10.4% (like-for-like up by 5.9%)
-- Used car unit sales up by 11.8% (like-for-like up by 2.7%)
-- Total aftersales revenues up by 9.0% (like-for-like up by 1.7%)
-- New facility developments underway to support Audi and Jaguar Land Rover
Commenting on the results Daksh Gupta, Group Chief Executive,
said:
"The Board is pleased to announce strong trading in the first
half of the year, underpinned by a combination of contributions
from recently acquired businesses and like-for-like organic growth
which led to our retail and leasing segments reporting significant
growth in profit before tax (up 26.6% and 40.9% respectively).
The successful completion of our IPO and transition to public
company status marked a significant moment in the Group's
development and provided us with increased financial capacity to
help us continue pursuing our goal of becoming the UK's premier
automotive dealer group for retail and leasing.
I would like to take the opportunity on behalf of the Board to
thank the entire Marshall team, our brand partners and new
investors for their continued support.
Based on current market conditions, the Board's outlook for the
full year remains in line with our expectations".
For further information and enquiries please contact:
Marshall Motor Holdings c/o Hudson Sandler Tel:
plc +44 (0) 20 7796 4133
Daksh Gupta, Group Chief
Executive
Mark Raban, CFO
Investec Bank plc (NOMAD Tel: +44 (0) 20 7597 4000
& Broker)
Christopher Baird
David Flin
David Anderson
Hudson Sandler Tel: +44 (0) 20 7796 4133
Nick Lyon
Alex Brennan
About Marshall Motor Holdings plc (www.mmhplc.com)
The Group's principal activities are the sale and repair of new
and used vehicles through Marshall Motors and the leasing of
vehicles through Marshall Leasing. The Group's businesses are
integrated and include a total of 71 franchises covering 24 brands,
operating from 63 sites across 16 counties in England.
MMH is the only franchised dealer group in the UK to represent
all of the top 5 prestige vehicle manufacturer brands (being Audi,
BMW, Mercedes-Benz, Land Rover and Jaguar) and all of the top 10
volume vehicle manufacturer brands (being Ford, Vauxhall,
Volkswagen, Nissan, Peugeot, Toyota, Citroen, Hyundai, Kia and
Skoda). Its diverse portfolio means it represents manufacturer
brands accounting for around 88% of all new vehicle sales in the
UK, the highest market coverage of any UK dealer group.
With revenues of GBP1.1bn in 2014, the Group is the tenth
largest dealer group in the UK.
Cautionary statement
This announcement contains unaudited information and
forward-looking statements that are based on current expectations
or beliefs, as well as assumptions about future events. These
forward-looking statements can be identified by the fact that they
do not relate only to historical or current facts and undue
reliance should not be placed on any such statements because they
speak only as at the date of this document and are subject to known
and unknown risks and uncertainties and can be affected by other
factors that could cause actual results, and MMH's plans and
objectives, to differ materially from those expressed or implied in
the forward-looking statements. MMH undertakes no obligation to
revise or update any forward-looking statement contained within
this announcement, regardless of whether those statements are
affected as a result of new information, future events or
otherwise, save as required by law and regulations.
Introduction
I am delighted to report that the Group has delivered a strong
trading performance during the Period which builds on the positive
full year performance reported in 2014. Both our retail and leasing
segments have reported significant growth in profit before tax (up
26.6% and 40.9% respectively) which has been partly offset, as
anticipated, by additional central costs, including the first time
occurrence of costs relating to our new public company status.
Following three consecutive years of strong growth in the UK new
car market, the rate of underlying growth has returned to more
normalised levels. During the Period, the Group increased its total
new car unit sales by 10.4% (like-for-like 5.9%) and increased its
used unit sales by 11.8% (like-for-like 2.7%).
The Group's retail segment has also shown growth within
aftersales across both revenue and margin, benefitting in part from
a growing UK vehicle parc (particularly in vehicles aged between 1-
3 years old where customers typically return to franchised
dealerships for aftersales services) but also due to a number of
management initiatives to drive productivity, efficiency and
customer retention.
The Group has also made significant progress within its
integrated leasing segment. At 30 June 2015, the leasing fleet was
5,897 vehicles, up 1.7% versus the same date last year.
We recognise the importance of, and the opportunities that exist
from, the use of technology both to attract customers and provide
them with an enhanced retail experience. We will be launching our
new website in the first quarter of 2016 to build on the success of
our existing site which, as a result of growth over recent years,
is now the 7(th) most visited UK dealer website. In addition,
following a successful pilot, we are also improving our customers'
experience in our showrooms with the roll-out in the second half of
2015 of a tablet-based enquiry management system.
The Group has continued to focus on all aspects of employee and
colleague engagement and the Board is delighted to report that this
has been recognised by the Great Place to Work Institute with the
Group being ranked the 26(th) best place to work in the UK (large
company category).
The Group remains well positioned to execute its acquisition
strategy supported by an adjusted net cash position at 30 June 2015
of GBP39.9m (excluding leasing loans) and a committed, undrawn
revolving credit facility of GBP75m.
Financial Review
Group turnover increased by 16.0% to GBP632.5m (H1 2014:
GBP545.4m). Like-for-like revenues showed an encouraging growth of
6.7% with revenues in new, used and aftersales all showing growth
against the same period last year.
Gross margin at 11.7% is marginally below the same period last
year, driven by an increased mix of new unit sales.
Operating expenses of GBP62.0m are 15.7% higher than in the same
period last year driven by the impact of acquisitions and an
anticipated increase in unallocated central costs. Unallocated
central costs of GBP4.1m are GBP2.2m higher than the same period
last year. This was driven in part by the first time occurrence of
ongoing costs to support our new public company status and a
one-off cost relating to the settlement of historic, pre-IPO long
term incentive plan ('LTIP') liabilities. Certain further
professional fees and expenses in relation to the IPO have been
charged against the share premium account.
Finance costs of GBP1.4m are GBP0.2m higher than the same period
last year, reflecting increased costs associated with the Group's
GBP75m revolving credit facility and increased stock financing
charges in line with volume growth. These additional costs include
amortisation of arrangement fees and non-utilisation charges.
At 22%, the effective tax rate is below last year in line with
the reduction in the UK corporation tax rate.
Total inventory at GBP181.7m is 11.5% higher than the position
reported at 31 December 2014. This increase has been driven, in
part, by additional stock-building to support new product
launches.
The Group continues to benefit from a strong balance sheet
following the IPO. Total net debt at 30 June 2015 was GBP6.3m with
an adjusted net cash position of GBP39.9m excluding the GBP46.3m
asset-backed loans within the leasing segment.
A new GBP75m three year banking facility was put in place in
March 2015 for general corporate purposes including acquisitions
and working capital requirements. The facility remains undrawn as
at the date of this announcement.
Over the longer term, the Board continues to believe it is in
the best interests of all stakeholders that the Group maintains a
sound financial position. In this respect, the Board targets net
bank indebtedness (excluding leasing segment loans) of not more
than 1.25x net debt / EBITDA within its future results. This
leverage may rise for a period of time towards the Group's banking
facility limit of not more than 3.0x should an exceptional
investment opportunity arise.
Interim Dividend
The Board is pleased to announce an interim dividend of 0.58p
per share. This pro-rata dividend is in line with the dividend
policy set out at the time of our IPO. The dividend will be paid by
25 September 2015 to shareholders who are on the Company's register
at close of business on 28 August 2015. As set out in our IPO
admission document, the Board intends to maintain a progressive
dividend policy whereby dividends are covered between 4 to 5 times
underlying earnings and paid in an approximate one-third (interim
dividend) and two-thirds (final dividend) split.
(MORE TO FOLLOW) Dow Jones Newswires
August 18, 2015 02:00 ET (06:00 GMT)
Operating Review: Retail Segment
The retail segment consists of 71 franchises trading from 63
sites. The Group operates a well balanced portfolio of volume,
prestige and alternate premium brands. The Group is the only
franchised dealer group in the UK to represent all of the top five
prestige vehicle manufacturer brands and all of the top ten volume
vehicle manufacturer brands and its diverse portfolio means it
represents manufacturer brands accounting for around 88% of all new
vehicle sales in the UK. The Board believes this diversified spread
of representation is a key strength of the business. In addition,
the Group has significant headroom with its key manufacturer
partners to achieve further growth in representation through future
acquisitions.
We have now successfully completed the integration of
acquisitions made in 2014 which have made a positive contribution
in the Period and are performing in line with expectations.
Capital expenditure during the Period was GBP4.3m, including the
purchase of the long-leasehold interest of our Jaguar/Land Rover
facility in Cambridge at a cost of GBP1.7m in preparation for the
longer term re-development of the site.
On 20 May 2015, the Group exchanged contracts (subject to
planning approvals) for the purchase of land for development in
Exeter to support the relocation of its Audi facility.
In addition, on 22 May 2015, the Group exchanged contracts
(subject to planning approvals) for the purchase of land for
development in Ipswich to support the establishment of a new
Jaguar/Land Rover facility. This development is part of the
reorganisation of the Jaguar/Land Rover Suffolk market area and
will see the relocation of the Group's existing Halesworth Land
Rover and Ipswich Jaguar dealerships to the new site.
Each of these new facilities is expected to commence trading in
the second half of 2016. We have planned for some disruption to
these businesses over the period of transition and they are all
expected to generate additional revenue and profitability once
through that initial transition.
In addition to the above developments, during the Period the
Group has continued to invest in the retail portfolio and as part
of the Group's continued improvement strategy, upgrades have been
undertaken at Milton Keynes Volvo, Plymouth Audi, Barnstable Skoda,
Taunton VW along with Mercedes Benz sites at South Lakes, Preston
and Blackpool. Further portfolio upgrades are scheduled for
Mercedes Benz Bolton and Blackburn.
Six months ended 30 June 2015 Revenue Gross Profit
GBPm mix* GBPm mix
------- ------- ------ -------
New Car 326.2 51.9% 23.8 34.5%
Used Car 238.1 38.0% 16.9 24.5%
Aftersales 63.1 10.1% 28.3 41.0%
Internal Sales (14.1) n/a - -
Total 613.4 100.0% 69.0 100.0%
======= ======= ====== =======
Six months ended 30 June 2014 Revenue Gross Profit
GBPm mix* GBPm mix
------- ------- ------ -------
New Car 275.7 51.1% 20.3 33.7%
Used Car 205.9 38.2% 14.9 24.7%
Aftersales 57.9 10.7% 25.0 41.6%
Internal Sales (11.7) n/a - -
Total 527.9 100.0% 60.2 100.0%
======= ======= ====== =======
*Revenue mix calculated excluding Internal Sales
New Vehicles
H1 H1 Variance
2015 2014
Total LFL
------
Total New Units 18,195 16,483 10.4% 5.9%
======= ======= ====== =====
During the Period, the Group increased its new car unit sales by
10.4% (like-for-like 5.9%). Market growth in new vehicle sales
continues to be driven by the availability of competitively priced
finance. Personal contract purchase (PCP) with minimal or zero
deposit requirements and affordable monthly payments have been
instrumental in driving the new retail market. In addition, a
weaker than expected economic recovery in the Eurozone and a
strengthening of Sterling coupled with slower demand in certain
international markets have resulted in additional new vehicle
supplies being drawn to the UK market.
Recent reductions in fuel costs, the introduction of more fuel
efficient vehicles and a stable used car market have also played
their part in driving new retail sales as consumers seek to access
the benefits of new car ownership.
Used Vehicles
H1 H1 Variance
2015 2014
------- -------
Total LFL
------- ------- ------ -----
Total Used Units 14,656 13,114 11.8% 2.7%
======= ======= ====== =====
Used car unit sales increased by 11.8% versus the same period
last year and 2.7% on a like-for-like basis. The Group continues to
operate a strict 56 day stocking policy and continues to account
for used car refurbishment and PDI costs at full retail labour
rates. The Board considers these combined policies promote improved
stock turnover, reduce residual value stock holding risk and ensure
rigour in appraising and valuing part exchange vehicles acquired by
the Group.
Used car gross margin at 7.1% is marginally below the same
period last year and is a key area of focus for further growth and
development moving forward. The Board is implementing a number of
incremental margin-driving initiatives including a greater focus on
used vehicles aged between three to five years. These vehicles have
a lower average selling price whilst maintaining similar levels of
gross profit per unit and are attractive to consumers seeking
reassurance and warranty protection from a franchised dealer.
Aftersales
H1 H1 Variance
2015 2014
Total LFL
Revenue (GBPm) 63.1 57.9 9.0% 1.7%
====== ====== ====== =====
Aftersales involves the servicing, maintenance and repair of
vehicles. The Group operates two standalone body shops and one
standalone petrol forecourt. Aftersales makes a significant
financial contribution to the Group.
The aftersales market is highly dependent on the UK vehicle
parc. The latest estimate from the Society of Motor Manufacturers
and Traders is that the UK car parc currently stands at 31.4m
vehicles, increasing over recent years as a result of the strong
new car market. In addition, increased penetration of service plans
have supported market growth allowing customers to plan and budget
for service costs with a higher level of certainty and ensuring
repeat visits to the dealership.
Gross margin at 44.8% has also seen a significant improvement,
up from 43.2% in the same period last year partly due to workshop
efficiency and productivity improvements.
Operating Review: Leasing Segment
H1 H1 Variance
2015 2014
------ ------ ---------
Additions 829 795 4.3%
Disposals 963 606 58.9%
Fleet 5,897 5,799 1.7%
====== ====== =========
The leasing segment achieved profit before tax of GBP2.5m during
the Period, a growth of 40.9% versus the same period last year. The
segment has continued to grow its fleet which, at 5,897 vehicles at
30 June 2015, was 1.7% ahead of the same date last year, including
the addition of a number of new clients. The fleet has declined
marginally from the position at 31 December 2014. This is, in part,
due to a number of disposals being deferred at the end of last year
to take advantage of a stronger used car market in January and
February 2015. The Group is targeting a small increase in the size
of the fleet for the year as a whole.
The leasing segment continues to focus on its
business-to-business strategy, providing a service-led fleet
management offering high added value service to clients of all
sizes. The segment is fully integrated within the Group and
wherever possible, sources new vehicles and de-fleets end of lease
vehicles via the Group's retail segment.
The client base of the segment remains well diversified and
balanced with no single customer representing more than 9% of the
fleet and the top 10 customers accounting for 43.0% of the
fleet.
Robust risk management and control is a core discipline of the
leasing segment's business model and the segment employs
sophisticated techniques to monitor and control residual value
risk. The used car market remained stable during the Period and the
Board will continue to monitor residual values closely. Disposal
profits are only recognised at the end of leases when they have
been achieved.
The leasing fleet continues to be financed by asset-backed loans
secured against the vehicles. The net book value of the fleet at 30
June 2015 was GBP59.6m against GBP46.3m of loans. This represents
embedded equity within the fleet of 22.4%. The Board believes that
a prudent approach to residual value setting combined with
significant equity in the leasing fleet provides a sustainable and
resilient model for the business.
The strategy of the leasing segment moving forward continues to
remain focused on recruiting and retaining clients through its
service-driven offering rather than attempting to compete with
larger competitors solely on pricing. The Board believes that this
model is capable of delivering steady and sustained growth moving
forward as well as providing additional margin retention
opportunities for the retail segment.
(MORE TO FOLLOW) Dow Jones Newswires
August 18, 2015 02:00 ET (06:00 GMT)
Operating Review: Unallocated Segment
The unallocated segment consists principally of administrative
and asset management functions which are not directly attributable
to the Group's retail or leasing segments. The unallocated segment
recorded a loss before tax of GBP4.1m during the Period compared to
loss before tax of GBP1.7m in the same period last year. Additional
costs are principally attributable to the first time occurrence of
expenses relating to the Group's public company status. In
addition, the Group incurred a one-off cost of GBP0.7m relating to
the settlement of historic pre-IPO LTIP liabilities.
Outlook
The Group has produced a set of strong results in the Period,
showing growth in both revenue and profit before tax. Order-take to
date for the important plate-change month of September is in line
with management expectations. The post-election economic landscape
with low interest rates and a favourable exchange rate environment
continues to allow manufacturers to lead with strong and attractive
consumer offers, driving vehicle sales.
The outlook for the aftersales departments remains positive
given the strength over recent years in the new car market and
growth in the UK car parc.
We continue to consider a number of acquisition
opportunities.
Based on current market conditions, the Board's outlook for the
full year remains in line with our expectations.
Daksh Gupta,
Chief Executive
18 August 2015
Marshall Motor Holdings plc
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2015
Note Six months Six months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Revenue 632,477 545,379 1,085,883
Cost of Sales (558,613) (481,108) (959,712)
------------ ------------ -------------
Gross Profit 73,864 64,271 126,171
Operating expenses (62,013) (53,593) (110,928)
Group operating profit 11,851 10,678 15,243
------------ ------------ -------------
Finance costs 5 (1,400) (1,157) (2,350)
Profit before taxation 10,451 9,521 12,893
Taxation 6 (2,299) (2,190) (2,957)
Profit for the period 8,152 7,331 9,936
============ ============ =============
Attributable to:
Owners of the parent 8,152 7,331 9,939
Non-controlling interests - - (3)
8,152 7,331 9,936
============ ============ =============
Total comprehensive income
for the period, net of
tax 8,152 7,331 9,936
============ ============ =============
Attributable to:
Owners of the parent 8,152 7,331 9,939
Non-controlling interests - - (3)
8,152 7,331 9,936
============ ============ =============
Earnings per share (expressed
in pence per share)
Basic earnings per share 7 19.7 208.5 282.6
------------ ------------ -------------
Diluted earnings per share 7 19.3 208.5 282.6
------------ ------------ -------------
Marshall Motor Holdings plc
Consolidated Statement of Changes in Equity
Note Share Share Retained Equity Non-controlling Total
Capital Premium Earnings attributable interests equity
to owners
of the
parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the half year
ended 30 June 2015
(Unaudited)
Balance at 1 January
2015 2,250 - 63,870 66,120 36 66,156
======== ======== ========= ============= =============== ========
Profit for the
period - - 8,152 8,152 - 8,152
Issue of share
capital 47,181 19,672 - 66,853 - 66,853
Total comprehensive
income 47,181 19,672 8,152 75,005 - 75,005
-------- -------- --------- ------------- --------------- --------
Transactions with
owners
Dividend paid - - (15,000) (15,000) - (15,000)
Balance at 30 June
2015 49,431 19,672 57,022 126,125 36 126,161
======== ======== ========= ============= =============== ========
For the half year
ended 30 June 2014
(Unaudited)
Balance at 1 January
2014 2,250 - 58,431 60,681 39 60,720
======== ======== ========= ============= =============== ========
Profit for the
period - - 7,331 7,331 - 7,331
Total comprehensive
income - - 7,331 7,331 - 7,331
-------- -------- --------- ------------- --------------- --------
Balance at 30 June
2014 2,250 - 65,762 68,012 39 68,051
======== ======== ========= ============= =============== ========
For the year ended
31 December 2014
(Audited)
Balance at 1 January
2014 2,250 - 58,431 60,681 39 60,720
======== ======== ========= ============= =============== ========
Profit for the
year - - 9,939 9,939 (3) 9,936
Total comprehensive
income - - 9,939 9,939 (3) 9,936
-------- -------- --------- ------------- --------------- --------
Transactions with
owners
Dividend paid - - (4,500) (4,500) - (4,500)
Balance at 31 December
2014 2,250 - 63,870 66,120 36 66,156
======== ======== ========= ============= =============== ========
Marshall Motor Holdings plc
Consolidated Statement of Financial Position
At 30 June 2015
Note 30 June 30 June 31 December
2015 2014 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Intangible assets 10 22,055 9,662 22,055
Property, plant and equipment 11 94,482 82,694 91,037
Investment properties 1,920 1,920 1,920
Investments 10 10 10
Deferred tax asset 94 313 94
Total non-current assets 118,561 94,599 115,116
----------- ----------- -----------
Current assets
Inventories 181,710 131,275 163,011
Trade and other receivables 54,689 112,878 73,181
Cash and cash equivalents 46,431 3,566 1,826
Total current assets 282,830 247,719 238,018
----------- ----------- -----------
Total assets 401,391 342,318 353,134
=========== =========== ===========
Shareholders' equity
Share capital 49,431 2,250 2,250
Share premium 19,672 - -
Retained earnings 57,022 65,762 63,870
----------- ----------- -----------
Equity attributable to
owners of the parent 126,125 68,012 66,120
Share of equity attributable
to non-controlling interests 36 39 36
(MORE TO FOLLOW) Dow Jones Newswires
August 18, 2015 02:00 ET (06:00 GMT)
Total equity 126,161 68,051 66,156
----------- ----------- -----------
Non-current liabilities
Loans and borrowings 22,084 22,464 25,205
Trade and other payables 8,612 8,808 8,579
Deferred tax liabilities 1,783 1,880 1,783
Total non-current liabilities 32,479 33,152 35,567
----------- ----------- -----------
Current liabilities
Loans and borrowings 30,692 23,234 28,342
Trade and other payables 210,062 214,124 221,442
Current tax liabilities 1,997 3,757 1,627
Total current liabilities 242,751 241,115 251,411
----------- ----------- -----------
Total liabilities 275,230 274,267 286,978
----------- ----------- -----------
Total equity and liabilities 401,391 342,318 353,134
=========== =========== ===========
Marshall Motor Holdings plc
Consolidated Cash Flow Statement
For the six months ended 30 June 2015
Note Six months Six months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
(unaudited) (unaudited) (audited)
Cash flows from operating GBP'000 GBP'000 GBP'000
activities
Profit before taxation 10,451 9,521 12,893
Adjustments for:
Depreciation 10,727 10,653 20,995
Finance costs 5 1,400 1,157 2,350
(Profit)/Loss on disposal
of Property, Plant & Equipment (45) (17) (55)
22,533 21,314 36,183
Changes in working capital:
(Increase)/decrease in inventories (18,699) 3,912 (13,816)
Decrease/(increase) in trade
and other receivables 18,492 (35,258) 5,646
(Decrease)/increase in trade
and other payables (11,347) 31,752 22,202
----------- ----------- ------------
(11,554) 406 14,032
Tax paid (1,930) (599) (4,145)
Interest paid (1,400) (1,157) (2,350)
----------- ----------- ------------
Net cash inflow from operating
activities 7,649 19,964 43,720
Cash flows from investing
activities
Purchase of property, plant
and equipment (18,712) (15,305) (33,059)
Purchase of investment property - (100) (100)
Acquisition of subsidiary,
net of cash acquired - (599) (15,788)
Proceeds from disposal of
property, plant and equipment 4,585 4,283 8,382
----------- ----------- ------------
Net cash outflow from investing
activities (14,127) (11,721) (40,565)
Cash flows from financing
activities
Proceed from borrowings 13,172 6,797 25,263
Repayment of borrowings (13,942) (13,233) (23,851)
Dividends paid (15,000) - (4,500)
Issue of share capital net
of costs 66,853 - -
Net cash (outflow)/ inflow
from financing activities 51,083 (6,436) (3,088)
Net increase in cash and
cash equivalents 44,605 1,807 67
Cash and cash equivalents
at 1 January 1,826 1,759 1,759
Cash and cash equivalents
at period end 46,431 3,566 1,826
=========== =========== ============
Reconciliation of net cash
flow to movement in net
debt
Increase in net cash 44,605 1,807 67
Repayment of asset back
financings 13,942 13,233 23,851
Proceeds of asset back financings (13,172) (6,797) (25,263)
----------- ----------- ------------
Movement in net debt 45,375 8,243 (1,345)
Opening net debt (51,720) (50,375) (50,375)
Net debt at period end (6,345) (42,132) (51,720)
=========== =========== ============
1. General Information
Marshall Motor Holdings plc (the 'Company') is a company which
is quoted on the Alternative Investment Market ("AIM") and is
incorporated and domiciled in the UK. The address of the registered
office is: Airport House, The Airport, Cambridge, CB5 8RY. The
Company is the holding company of Marshall Motor Group Limited,
Marshall Leasing Limited and other subsidiaries (collectively, the
"Group"), whose activities consist principally of car and
commercial vehicle sales, leasing, distribution, service and
associated activities trading under the names 'Marshall Motor
Group' and 'Marshall Leasing'. The registered number of the company
is 2051461.
These consolidated interim financial statements for the six
months ended 30 June 2015 and for the six months ended 30 June 2014
are unaudited. They do not include all the information required for
full annual financial statements and should be read in conjunction
with the consolidated financial statements of the Group for the
year ended 31 December 2014.
The figures for the year ended 31 December 2014 are not the
statutory accounts for that year but have been extracted from the
statutory accounts filed with the Registrar of Companies on which
the auditor gave an unqualified opinion and did not contain
statements under section 498(2) or (3) of the Companies Act
2006.
These statements have been reviewed by the Company's auditor and
a copy their review report is set out at the end of these
statements.
The financial information is presented in thousands of pounds
sterling ("GBP") except when otherwise indicated.
'Like-for-like' businesses are defined as those which traded
under the Group's ownership throughout both the period under review
and the corresponding comparative period.
These consolidated interim financial statements were approved by
the Board on 18 August 2015.
2. Accounting Policies
The annual financial statements of Marshall Motor Holdings plc
are prepared in accordance with International Financial Reporting
Standards ("IFRS") as adopted by the European Union. The financial
information included in this interim financial report has been
prepared in accordance with International Accounting Standard 34
'Interim Financial Accounting' as adopted by the European Union.
This interim financial report has been prepared under the
historical cost convention as modified by the revaluation of
investments and investment properties.
These financial statements have been prepared in accordance with
the accounting policies set out in the Group Financial Statements
for the year ended 31 December 2014 as disclosed in the document
prepared for the purposes of the Group's admission to AIM
("Admission Document"), and these accounting policies are expected
to apply in the Group Financial Statements for the year ended 31
December 2015.
Basis of preparation: Going concern
After making appropriate enquiries, the directors have a
reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future and
for at least one year from the date of these interim financial
statements. For these reasons, they continue to adopt the going
concern basis in the preparation of these interim financial
statements.
3. Segmental Reporting
Management has determined the operating segments based on the
operating reports reviewed by the Chief Executive that are used to
assess both performance and strategic decisions. Management has
identified that the Chief Executive Officer is the chief operating
decision maker in accordance with the requirements of IFRS 8
'Operating segments'.
The business is split into two main operating segments
generating revenue and a third support segment:
-- Retail - sales and servicing of motor vehicles and ancillary services.
-- Leasing - leasing of vehicles to end consumers and fleet customers.
-- Unallocated - administrative and asset management functions
in support of the wider business.
All segment revenue, profit before taxation, assets and
liabilities are attributable to the principal activity of the Group
being the provision of car and commercial vehicle sales, leasing,
vehicle service and other related services. All revenue is
generated in the UK.
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Depreciation presented in the segmental note is restricted to
assets other than assets held for contract rental.
For the half year ended
30 June 2015 (Unaudited)
Retail Leasing Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue
Total revenue 613,363 18,997 117 632,477
Total revenue from external
customers 613,363 18,997 117 632,477
Depreciation (2,044) (4) (9) (2,057)
Segment operating profit/(loss) 12,856 3,041 (4,046) 11,851
Finance cost (848) (535) (17) (1,400)
Profit/(loss) before
taxation 12,008 2,506 (4,063) 10,451
======== ======== ============ ========
Total assets 246,812 70,415 84,164 401,391
======== ======== ============ ========
Total liabilities 194,360 54,907 25,963 275,230
======== ======== ============ ========
Additions in the period
Property, plant and equipment 4,263 14,449 - 18,712
3. Segmental Reporting (continued)
For the half year ended
30 June 2014 (Unaudited)
Retail Leasing Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue
Total revenue 527,877 17,390 112 545,379
Total revenue from external
customers 527,877 17,390 112 545,379
Depreciation (1,721) (4) (8) (1,733)
Segment operating profit/(loss) 10,043 2,377 (1,742) 10,678
Finance cost (558) (599) - (1,157)
Profit/(loss) before taxation 9,485 1,778 (1,742) 9,521
======= ======= =========== =======
Total assets 227,313 63,808 51,197 342,318
======= ======= =========== =======
Total liabilities 175,447 50,559 48,261 274,267
======= ======= =========== =======
Additions in the period
Property, plant and equipment 2,286 13,457 - 15,743
For the year ended 31 December
2014 (Audited)
Retail Leasing Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue
Total revenue 1,050,473 35,179 231 1,085,883
Total revenue from external
customers 1,050,473 35,179 231 1,085,883
Depreciation (3,657) (9) (16) (3,682)
Segment operating profit/(loss) 15,748 5,073 (5,578) 15,243
Finance cost (1,210) (1,140) - (2,350)
Profit/(loss) before taxation 14,538 3,933 (5,578) 12,893
========= ======= =========== =========
Total assets 243,571 70,407 39,156 353,134
========= ======= =========== =========
Total liabilities 185,791 57,405 43,782 286,978
========= ======= =========== =========
Additions in the period
Property, plant and equipment 11,221 27,265 - 38,486
3. Segmental Reporting (continued)
Retail revenue is derived from a number of service lines,
principally being new and used vehicle sales and aftersales as per
the following:
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
New 326,189 275,680 544,835
Used 238,132 205,921 413,066
Aftersales & other 63,132 57,927 117,857
Internal (14,090) (11,651) (25,285)
Total 613,363 527,877 1,050,473
============ ============ =============
4. Other Operating Costs
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Employee costs 32,052 27,587 56,564
Depreciation on property,
plant and equipment 2,061 1,687 3,010
Loss/(profit) on disposal
of property, plant and equipment (45) (17) (55)
Operating lease rentals -
property 3,366 3,205 6,608
Management charge from Marshall
of Cambridge (Holdings) Limited 1,030 854 1,818
Legal and professional charges 514 419 1,843
Other expenses 23,035 19,858 41,140
(62,013) (53,593) (110,928)
=========== =========== ============
Included within the management charge from Marshall of Cambridge
(Holdings) Limited in the Period is a charge of GBP656,000 in
respect of historic LTIP liabilities which crystallised when the
Company's shares were admitted to AIM.
5. Finance Costs
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Interest costs:
Interest payable on bank borrowings 579 599 1,140
Stock financing charges and other
interest 821 558 1,210
Finance costs 1,400 1,157 2,350
=========== =========== ============
6. Taxation
Analysis of charge in year Six months Six months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Current tax on profits for the
year 2,299 2,190 3,490
Adjustments in respect of prior
years - - 122
Total current tax 2,299 2,190 3,612
----------- ----------- ------------
Origination and reversal of temporary
differences - - (377)
Other timing differences - - (278)
Total deferred tax - - (655)
Income tax charge 2,299 2,190 2,957
----------- ----------- ------------
The tax charge for the six months ended 30 June 2015 has been
provided at the effective tax rate of 22% (six months ended 30 June
2014: 23%)
7. Earnings per Share
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Profit for the period 8,152 7,331 9,939
Non-controlling interests - - (3)
----------- ----------- ------------
Basic earnings 8,152 7,331 9,936
Weighted average number of ordinary
shares in issue for the basic
earnings per share 41,318,867 3,515,625 3,515,625
Basic earnings per share (in
pence per share) 19.7 208.5 282.6
=========== =========== ============
Diluted earnings per share (in
pence per share) 19.3 208.5 282.6
=========== =========== ============
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