Marshall Motor Holdings PLC Pre-close statement and Notice of Results (1568F)
July 11 2019 - 2:00AM
UK Regulatory
TIDMMMH
RNS Number : 1568F
Marshall Motor Holdings PLC
11 July 2019
11 July 2019
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
Strong Outperformance of Market; Outlook in line
Marshall Motor Holdings plc, one of the UK's leading automotive
retail groups, issues its pre-close trading statement ahead of the
release on 13 August 2019 of its half year results for the six
months ended 30 June 2019 ("H1" or "Period").
H1 Performance
The UK new and used car markets remain challenging with volume
pressures and well documented cost headwinds for the retail sector,
together with recent margin pressure in the used car market. During
the Period, the Group outperformed the market in both retail and
fleet new vehicle unit sales, continued strong growth in used
vehicle unit sales and achieved further growth in aftersales
revenues. This helped mitigate the impact of the challenging market
conditions and the Group expects to deliver an H1 underlying profit
before tax in line with the Board's expectations.
Financial Position
The Group delivered strong cash generation during the Period and
expects to report a positive net cash position of approximately
GBP5m at 30 June 2019 (31 December 2018: net debt of GBP5.1m).
This was achieved notwithstanding the previously reported
GBP6.0m paid to complete the process of eliminating all outstanding
historic defined benefit pension liabilities, the GBP3.5m
investment made in the acquisition of six KODA dealerships, the
subsequent GBP1.7m paid to acquire the freehold property at
Northampton KODA and GBP1.7m of incremental dividend payments
compared to the prior year following the change to the Group's
dividend policy.
The Group continues to manage working capital robustly and work
with its Brand partners to control capital expenditure.
Summary and Outlook
Despite challenging market conditions, the Group has delivered a
strong H1 unit sales performance, ahead of both the new and used
car markets and underlying profit before tax in line with the
Board's expectations.
Given continued weak consumer confidence as a result of ongoing
political uncertainty over Brexit, ongoing cost headwinds for the
retail sector and further potential new vehicle supply constraints
in the lead up to the implementation of further emissions-related
regulations on 1 September 2019, the Board believes it is right to
remain cautious regarding the outlook for the remainder of the
year. Nevertheless, the Board's current outlook for the full year
remains unchanged.
Interim Results
The Group will announce its interim results for the six months
ended 30 June 2019 on 13 August 2019.
ENDS
For further information and enquiries please contact:
Marshall Motor Holdings plc c/o Hudson Sandler
Daksh Gupta, Chief Executive Officer Tel: +44 (0) 20 7796
4133
Richard Blumberger, Chief Financial Officer
Investec Bank plc (Financial Adviser, Tel: +44 (0) 20 7597
NOMAD & Broker) 5970
Christopher Baird
David Flin
David Anderson
Hudson Sandler Tel: +44 (0) 20 7796
4133
Nick Lyon
Bertie Berger
Nick Moore
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. The Group's businesses have a total of 106
franchises covering 23 brands, operating from 84 locations across
27 counties in England. In addition, the Group operates five trade
parts specialists, three used car centres, five standalone body
shops and one pre delivery inspection centre.
In May 2019 the Group was recognised by the Great Place to Work
Institute, being ranked the 11th best place to work in the UK
(super large company category). This was the ninth year in
succession that the Group has achieved Great Place to Work
status.
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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