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RNS Number : 9560T
Marshall Motor Holdings PLC
12 January 2017
12 January 2017
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
Pre-close Statement and Notice of Results
'2016 Performance Comfortably In Line With Expectations'
Marshall Motor Holdings plc, one of the UK's leading automotive
retail and leasing groups, issues its pre-close statement ahead of
the release on 15 March 2017 of its full year results for the year
ended 31 December 2016 ("FY16").
The Group continued to build on the record financial performance
reported during the first half of FY16 ("H1"), delivering further
material improvements during the second half of FY16 ("H2"). This
was driven by continued strong like-for-like revenue growth and
contributions from recent acquisitions including SG Smith Holdings
Limited ("SGS"), acquired on 16 November 2015, and Ridgeway Garages
(Newbury) Limited ("Ridgeway"), acquired on 25 May 2016.
The financial performance of the Group during FY16 is
anticipated to be comfortably in line with our expectations.
Retail Segment
During FY16, the Group's retail segment showed strong growth in
both revenue and profitability, including contributions from both
SGS and Ridgeway. The like-for-like growth in sales of new vehicle
units reported in H1 strengthened in H2, although margins remained
under pressure. Like-for-like sales of used vehicle units during
FY16 were marginally above the comparable period last year.
Strong like-for-like growth in after-sales revenues and margins
continued throughout FY16.
Leasing Segment
The Group's leasing segment performed well and in line with our
expectations during FY16. The leasing fleet continued to show
growth and, at 6192 units at the end of FY16, was 2.7% ahead of the
position reported at 31 December 2015. The used car market remained
robust in FY16 and the segment has continued to benefit from good
levels of disposal profitability.
Unallocated Segment and exceptional items
Unallocated central costs during the Period were materially in
line with expectations.
As highlighted at the time of the Ridgeway acquisition, in
addition to the GBP1.9m of exceptional costs incurred in H1, during
H2 the Group incurred further exceptional costs, in line with
expectations, relating to the ongoing integration and
reorganisation of the business.
Financial position
The Group's year end net debt position was in line with our
expectations. The Group's balance sheet remains strong, underpinned
by over GBP100m of freehold/long leasehold property.
Acquisitions
The strategic acquisition of Ridgeway extended the Group's
footprint into new and attractive geographical territories and has
greatly increased the Group's scale with key brand partners. The
integration of Ridgeway remains ongoing and to plan.
Outlook
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 SGS
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.
Full Year Results
The Group will publish its full year results for the twelve
months ended 31 December 2016 on 15 March 2017.
This announcement contains inside information.
Ends
For further information and enquiries please contact:
Marshall Motor Holdings plc c/o Hudson Sandler
Daksh Gupta, Group Chief Executive Tel: +44 (0) 20
7796 4133
Mark Raban, Chief Financial
Officer
Investec Bank plc (Financial Tel: +44 (0) 20
Adviser, NOMAD & Broker) 7597 4000
Christopher Baird
David Flin
David Anderson
Hudson Sandler Tel: +44 (0) 20
7796 4133
Nick Lyon
Alex Brennan
Bertie Berger
Notes to Editors
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 Motor Group and the leasing of
vehicles through Marshall Leasing. Following the acquisition of
Ridgeway Garages (Newbury) Limited announced on 26 May 2016, the
Group's businesses have a total of 103 franchises covering 24
brands, operating from 89 sites across 25 counties in England. In
addition, the Group operates five trade parts specialists, five
used car centres, five standalone body shops and one PDI
centre.
In May 2016 the Group was recognised by the Great Place to Work
Institute, being ranked the 19th best place to work in the UK
(large company category). In November 2016 Marshall Leasing was
named Fleet Service Company of the Year 2016 by the Association of
Car Feet Operators (ACFO), an award it also won in 2010 and
2013.
Cautionary statement
This announcement contains unaudited information based on
management accounts 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 the Group'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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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