TIDMMMH
RNS Number : 9946J
Marshall Motor Holdings PLC
04 July 2017
4 July 2017
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
Pre-close Trading Statement
and
Notice of Results
Strong First Half, Full Year Outlook Ahead of 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 August 2017 of its half year results for the six
months ended 30 June 2017 ("H1") ("Period").
During H1 the Group has continued to deliver further material
improvements in profitability compared with the corresponding
period last year. This has been driven by continued like-for-like*
revenue growth together with the contribution from Ridgeway Garages
(Newbury) Limited ("Ridgeway"), acquired on 25 May 2016.
Retail Segment
During H1, the Group's retail segment has shown significant
growth in both revenue and profitability, benefitting from a
material contribution from Ridgeway. Performance in the first
quarter was particularly strong as some customers pulled forward
new car purchases ahead of changes to Vehicle Excise Duty which
took effect on 1 April 2017 and the timing of Easter after the end
of the quarter.
As widely expected, during the first five months of 2017 the UK
new car market declined, with a fall in UK registrations to retail
customers partially offset by growth in registrations to fleet
customers. Encouragingly, against this UK market backdrop, over the
same period the Group outperformed the new car retail market. As
anticipated, the Group experienced a like-for-like decline in unit
sales to fleet customers over this period following a commercial
decision to withdraw from some low margin business.
Like-for-like sales of used vehicle units during H1 showed good
growth with a strengthening trend throughout the Period, although
there was ongoing margin pressure.
Like-for-like growth in after-sales revenues has continued
throughout H1.
Leasing Segment
During H1, the Group's leasing segment has continued to enjoy
good levels of profitability, albeit below the exceptional levels
reported in H1 2016. This was due in part to a reduced level of
disposals during the Period.
At 30 June 2017, the leasing segment's fleet consisted of 6,290
units compared to 6,192 units as at 31 December 2016. A number of
new customer wins during the Period and a strong unfulfilled order
bank leaves the leasing segment well positioned to deliver future
fleet growth.
Unallocated Segment
In line with expectations, unallocated central costs during the
Period were above the comparable period last year.
Financial position
The Group's net debt position at 30 June 2017 was in line with
our expectations. The Group's balance sheet remains strong,
underpinned by a strengthening mix of freehold / long-leasehold
property.
Portfolio development
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 is progressing as planned and is nearing
completion.
As previously announced, during the Period the Group completed
the acquisition of Leeds Volvo, further strengthening its position
as the largest franchise partner of Volvo Car UK by number of
sites.
In addition, the Group completed the sale of a vacant freehold
site in Totton, Southampton, acquired as part of the acquisition of
Ridgeway, for GBP2m.
Outlook
The Group has delivered a strong performance during H1,
particularly in the first quarter.
The Board is cognisant of the economic and political uncertainty
following the UK referendum on EU membership and industry forecasts
for continuing declines in the UK new car market. The Board
therefore remains cautious. Nonetheless, given the strong
performance during H1, the Board's current outlook for the full
year is now ahead of its previous expectations.
Overall, 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.
Interim Results
The Group will announce its interim results for the six months
ended 30 June 2017 on 15 August 2017.
This announcement contains inside information.
*Like-for-like businesses are defined as those that traded under
the Group's ownership throughout both the period under review and
the whole of the comparative period.
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. The Group's businesses have a
total of 104 franchises covering 24 brands, operating from 90
locations across 26 counties in England. In addition, the Group
operates five trade parts specialists, four used car centres, five
standalone body shops and one PDI centre.
In May 2017 the Group was recognised by the Great Place to Work
Institute, being ranked the 22(nd) best place to work in the UK
(large company category). This was the seventh year in succession
that the Group has achieved Great Place to Work status.
In November 2016 Marshall Leasing was named Fleet Service
Company of the Year 2016 by the Association of Car Fleet 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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