TIDMMMH
RNS Number : 7918I
Marshall Motor Holdings PLC
13 August 2019
13 August 2019
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
Unaudited interim results for the six months ended 30 June
2019
Strong outperformance of market; outlook in line
Marshall Motor Holdings plc, one of the UK's leading automotive
retail groups, announces its unaudited interim results for the six
months ended 30 June 2019 ("H1" or the "Period").
Financial Summary
H1 2019 H1 2018 Var %
(restated for IFRS 16)
Underlying:
-------------------------------------- -------- ----------------------- --------
Like-for-like(1) revenue (GBPm) 1,160.6 1,150.0 +0.9%
Profit before tax(2) ('PBT') (GBPm) 15.2 16.0 (5.3%)
-------------------------------------- -------- ----------------------- --------
Basic earnings per share (p) 15.0 16.1 (6.8%)
Reported:
Revenue (GBPm) 1,183.3 1,162.9 +1.8%
Profit before tax (GBPm) 14.8 16.2 (9.0%)
Basic earnings per share (p) 14.6 16.3 (10.4%)
Dividend per share (p) 2.85 2.15 +32.6%
-------------------------------------- -------- ----------------------- --------
Adjusted Net Cash / (Debt)(3) (GBPm) 5.8 0.9 +544.4%
Reported Net Cash / (Debt)(4) (GBPm) (82.2) (92.7) +11.3%
Highlights
-- Strong financial performance in a challenging market;
H1 result in line with the Board's expectations
-- Market outperformance in all core metrics during the Period:
-- Like-for-like new unit sales to retail customers down
0.4% compared to a market(5) decline of 3.2%;
-- Like-for-like new unit sales to fleet customers down
1.1% compared to a market(5) decline of 3.6%;
-- Continued strong like-for-like used unit sales growth
of 7.2%;
-- Like-for-like aftersales revenue up 1.8%
-- Gross margin maintained at 11.4% (H1 2018: 11.4%), with
higher new vehicle margins offsetting margin pressure
in used vehicles and aftersales
-- Like-for-like net operating expense growth of 1.6%, 2.0%
excluding impact of lease disposal, benefitted from a
number of one-off management actions
-- Adjusted net cash of GBP5.8m as at 30 June 2019 (30 June
2018: GBP0.9m), reflecting disciplined working capital
management and working with our brand partners to control
capital expenditure. Reported net debt reflects previously
highlighted effect of adopting IFRS16
-- Continued investment in the Group's property portfolio;
GBP8.8m capital expenditure during the Period, including
the purchase of the Northampton KODA freehold for GBP1.7m
-- Acquisition of six KODA franchised dealerships making
the Group KODA's largest UK retailer
-- Continued strong balance sheet with net assets at 30 June
2019 of GBP200.7m, equivalent to GBP2.57 per share (30
June 2018: GBP195.1m, GBP2.51 per share) including GBP123.9m
of freehold property
-- Interim dividend 2.85p per share (2018: 2.15p), up 32.6%
aided by recently revised dividend policy
Daksh Gupta, Chief Executive Officer, said:
"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."
1 "Like-for-like" businesses are defined as those which traded
under the Group's ownership throughout both the period under review
and the whole of the corresponding comparative period
2 Underlying profit before tax is presented excluding non-underlying items (see Note 6)
3 Adjusted net debt is presented excluding the impact of the
recognition of lease liabilities under IFRS16 (see Note 3a)
4 Reported net debt includes the impact of the recognition of
lease liabilities under IFRS16. (see Note 3a)
5 Registrations as reported by the Society of Motor Manufacturers and Traders
For further information and enquiries please contact:
Marshall Motor Holdings plc c/o Hudson Sandler Tel: +44 (0)
20 7796 4133
Daksh Gupta, Chief Executive Officer
Richard Blumberger, Chief Financial
Officer
Investec Bank plc (NOMAD & Broker) Tel: +44 (0) 20 7597 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 comprise 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.
Operating Review
Introduction
Our unaudited interim results for the six months ended 30 June
2019 ("H1" or the "Period") reflect a strong unit sales
performance, outperforming the new retail, new fleet and used car
markets, together with further growth in aftersales revenues. The
Group has delivered an underlying profit before tax of GBP15.2m (H1
2018: GBP16.0m). This was a strong performance given the
challenging market conditions and ongoing cost headwinds, and was
in line with the Board's expectations.
As announced in March 2019, the Group completed two acquisitions
during the Period comprising six KODA franchised dealerships, as a
result of which the Group became KODA's largest UK retailer and now
represents the brand in 11 locations. These acquisitions
demonstrated our commitment to our stated strategy to grow with
existing brand partners in new geographic territories. The
aggregate cash consideration paid for the goodwill and fixed assets
of the acquired businesses was GBP3.5m and the Group also
subsequently took the opportunity to separately acquire the
freehold property at Northampton KODA for GBP1.7m. The integration
of these businesses is progressing according to plan and
performance to date has been in line with our expectations.
The Group operates a well balanced portfolio of volume, premium
and alternative premium brands which, at 30 June 2019, accounted
for 27.4%, 48.1% and 24.5% respectively of the Group's total
franchises (by number). The Group's diverse portfolio means it
represents manufacturer brands accounting for over 80% of all new
vehicle sales in the UK. The Board continues to believe that this
scale and diversified spread of representation helps protect the
Group from the effect of the cyclical nature of individual brand
performance.
Six months ended 30 June 2019
Revenue Gross Profit
GBPm mix* GBPm mix*
----------- --------- ----------- -------------
New Car 569.1 47.1% 43.6 32.3%
Used Car 509.6 42.2% 33.5 24.9%
Aftersales 129.5 10.7% 57.8 42.8%
Internal Sales / Other (25.0) - 0.2 -
Total 1,183.3 100.0% 135.0 100.0%
=========== ========= =========== =============
Six months ended 30 June 2018
Revenue Gross Profit
GBPm mix* GBPm mix*
----------- -------- ----------- -------------
New Car 584.6 49.3% 40.5 30.5%
Used Car 474.6 40.0% 34.2 25.7%
Aftersales 126.4 10.7% 58.1 43.8%
Internal Sales / Other (22.7) - 0.1 -
Total 1,162.9 100.0% 133.0 100.0%
=========== ======== =========== =============
*Revenue and gross profit mix calculated excluding internal
sales / other
New Vehicles
H1 H1 Variance
2019 2018 Total LFL
New Retail Units 16,108 15,803 1.9% (0.4%)
Fleet Units 9,199 9,396 (2.1%) (1.1%)
------ ------ ---------- ---------
Total New Units 25,307 25,199 0.4% (0.7%)
====== ====== ========== =========
Total new car revenue in the Period was GBP569.1m (H1 2018:
GBP584.6m), like-for-like GBP559.7m (H1 2018: GBP580.7m) was down
3.6%.
As expected, the UK new car market continued to decline during
the Period. The Society of Motor Manufacturers and Traders ('SMMT')
has reported that during the Period, new car registrations to
retail and fleet customers declined by 3.2% and 3.6% respectively
with total registrations of new vehicles in the UK, including the
impact of dealer self-registration activity, declining by 3.4%. In
the first quarter of 2019, the overall market declined by 2.4%
however, the second quarter of 2019 became more challenging with
the overall market declining 4.6%.
The Group's like-for-like sales of new units to retail customers
decreased by 0.4%, a strong market out-performance. The supply
challenges reported in the second half of 2018 were alleviated for
a number of our brand partners and following a well-reported
decline in demand for diesel vehicles, all premium brands have
increased the proportion of petrol, hybrid and electric vehicle
derivatives being produced to address current consumer demand.
The Group's like-for-like sales of new units to fleet customers
decreased by 1.1% which was also a market out-performance. Sales of
new vehicles to fleet customers have been impacted by the deferral
of vehicle purchases as a result of a combination of continued
economic uncertainty and the current lack of clarity in relation to
the future tax implications of diesel vehicles which have typically
formed a greater share of the market for fleet customers.
Despite these challenges, new car gross margin strengthened
during the Period to 7.7%, up 73bp compared with the same period
last year (H1 2018: 6.9%). This positive margin performance in new
vehicle sales was driven by a combination of the Group's
achievement of our brand partners' sales targets without material
pre-registration activity and improved product mix in certain
brands compared to last year.
Used Vehicles
H1 H1 Variance
2019 2018 Total LFL
------ ------ ---------- -------
Total Used Units 24,330 22,659 7.4% 7.2%
====== ====== ========== =======
Total used car revenue in the Period was GBP509.6m (H1 2018:
GBP474.6m), like-for-like GBP498.8m (H1 2018: GBP467.0m) was up
6.8%.
Like-for-like sales of used units during the Period were up 7.2%
versus the corresponding period last year, a continuation of the
strong performance in the second half of last year.
As has been widely reported, the used car market experienced
margin pressure during the Period, particularly during the second
quarter of 2019. Seasonal declines in used car values during the
Period were sharper than historic norms as a result of a number of
factors including strong comparable values in 2018 as a result of
WLTP-related supply shortages in the new car market, together with
an increased volume of 3-4 year old used cars in the market in the
Period. A return to a more historic used car values profile is
anticipated for the remainder of this year.
Through the Group's robust operating controls, in particular,
our prudent 56-day stocking policy, together with continued
enhancement of the Group's management information system Phoenix 2,
the Group was able to contain its used car margin reduction to
63bps at 6.6% (H1 2018: 7.2%).
Aftersales
H1 H1 Variance
2019 2018 Total LFL
----- ----- ----- ----
Revenue (GBPm) 129.5 126.4 2.4% 1.8%
===== ===== ===== ====
In addition to the servicing, maintenance and repair of vehicles
in our franchised retail centres, the Group also operates five
standalone bodyshops, five Trade Parts Centres and one standalone
central PDI facility.
Total aftersales revenue in the Period was GBP129.5m (H1 2018:
GBP126.4m) with the Group continuing to deliver consistent
like-for-like aftersales revenue growth, up 1.8%.
Aftersales margin during the Period was 44.6% (H1 2018: 46.0%).
The reduction in aftersales margin during the Period was due in
part to an increased mix of lower margin parts sales, which also
experienced margin pressure, together with an increase in
operational costs. We are expecting to see some margin recovery in
the second half of the year.
At 30 June 2019, the Group had over 70,000 customers in live
service plans. Service plans continue to form a key part of the
Group's retention strategy, allowing customers to spread the
maintenance cost of their vehicle whilst providing us with a
greater level of certainty over future aftersales profits.
Total aftersales gross profit was down 0.6% to GBP57.8m (H1
2018: GBP58.1m) as a result of the issues referred to above and
accounted for 42.8% of the Group's total gross profit (H1 2018:
43.8%).
Operating Costs
Overall Group costs increased by 2.5% to GBP114.9m (H1 2018:
GBP112.1m), in part driven by the Group's recent acquisitions.
Like-for-like operating costs increased by 1.6% to GBP112.3m (H1
2018: GBP110.5m). This performance benefitted from GBP0.6m in
relation to a lease disposal, without which like-for-like costs
would have been up by 2.0%. This was a strong result which
benefited from a number of one-off management actions.
In the face of ongoing well documented cost headwinds for the
retail sector, we continue to be disciplined in our approach to
cost management, with rigorous policies and procedures in place to
control all areas of discretionary spend.
Portfolio Management
As announced on 4 March 2019, the Group acquired the business
and assets of Leicester and Nottingham KODA from Sandicliffe
Limited on 31 January 2019 and the business and assets of Bedford,
Harlow, Letchworth and Northampton KODA from Progress Bedford
Limited on 28 February 2019. The Group also took the opportunity to
separately acquire the freehold property at Northampton KODA for
GBP1.7m during the Period.
The Group continues to review its portfolio on an ongoing basis
to maximise shareholder value. The Group's stated strategy is to
grow scale with existing brand partners and extend our geographic
footprint into new regions. However, our focus will remain on
ensuring a strong strategic and financial case for any acquisition
opportunities. We have further headroom to grow with all brand
partners in what we believe, with continuing market uncertainty,
will still be a consolidating market in which larger dealer groups
with diversified franchise portfolios will be better placed.
Capital Investment
During the Period, the Group invested GBP8.8m of capital
expenditure into its retail centres, including GBP1.7m to acquire
the freehold of Northampton KODA. Due to the postponement of
certain developments until 2020, we now expect capital expenditure
over the full year to be lower than our initial expectations.
During the Period, the Group completed the following
developments:
-- Lincoln Jaguar Land Rover: this development brought together
Lincoln Jaguar and Lincoln Land Rover, previously two separate
leasehold sites, on one purpose-built freehold site providing
a significant increase in capacity for both vehicle and
aftermarket sales
-- Cambridge Ford Store: this relocated our existing leasehold
showroom on Newmarket Road to a state-of-the-art Ford Store
on long leasehold property and provides a significantly
improved customer experience
-- Lincoln Nissan: relocation to the Group's former Lincoln
Land Rover leasehold premises
After recent investments, the net book value of Group's freehold
and long-leasehold property portfolio increased to GBP123.9m (H1
2018: GBP116.6m).
People Centric
The Group was excited to, once again, achieve 'Great Place to
Work' status by The Great Place to Work Institute for the ninth
consecutive year. The Group was ranked 11(th) in the super large
category based on the 2018 survey. As a result of being named as
one of the UK's Best Workplaces for the fifth consecutive year, the
Group was recognised with a Laureate award. The Group remains the
number one ranked automotive business in the survey for the third
consecutive year.
Technology and Online
The use of technology, online and social media are key drivers
to increasing customer engagement levels as well as supporting the
day-to-day operation of the business. The Group's website remains
the 6(th) most visited dealer website in the UK and we remain one
of the leading innovators in utilising social media channels. This
was further recognised in the Period with the Group winning both
'Best Use of Social Media' at the 2019 Automotive Management Awards
and the 'Social Media' category at the 2019 Motor Trader
awards.
The Group's management information system, Phoenix 2, continues
to drive operational effectiveness. Its continued development and
disciplined use throughout the business is one of the key drivers
to the continued market outperformance by the Group.
Worldwide Harmonised Light Vehicle Test Procedure
The introduction of the Worldwide Harmonised Light Vehicle Test
Procedure ("WLTP") for commercial vehicles from 1 September 2019,
together with changes to the Real Driving Emissions Test with
effect from the same date, each have the potential to impact supply
of new vehicles in the second half of 2019. The extent of this
impact is not yet known and it will vary by manufacturer and by
vehicle model. As with WLTP, industry forecasts suggest there is
likely to be some impact on vehicle supply and longer lead times
for some models and brands of new vehicles, albeit at this stage,
it is anticipated that the impact will be less than that
experienced in 2018.
Financial Review
Impact of First Time Adoption of IFRS 16 Leases
The Group has applied IFRS 16 for the first time in the Interim
Report and Accounts for the six months ended 30 June 2019; the
standard has been adopted using the full retrospective approach.
The standard has no effect on the Group's economic activity, nor
does it impact cash flows. However, adoption of the standard
results in the recognition of new assets and liabilities, changes
to the nature and timing of items of expenditure as well as changes
to the classification of cash flows relating to lease
contracts.
IFRS 16 removes the current distinction between operating leases
and finance leases and requires that, for all leases, a right-of
use asset and a lease liability are recognised in the Consolidated
Balance Sheet. The asset represents the right to use the leased
asset and the lease liability represents the commitments payable
under the lease.
Operating lease rental charges in the Consolidated Statement of
Comprehensive Income are replaced by interest charges and
depreciation expenses. The timing of the recognition of these lease
costs changes, with increased costs being recognised in the earlier
years of the lease due to interest being recognised at a constant
rate on the carrying value of the lease liability.
In the Group's full year results announcement released in March
2019, the Group provided an initial estimate of IFRS 16; that it is
likely to be marginally earnings dilutive in the early years of
adoption, with an initial 1%-2% impact on profit before tax. In
addition, if the balance sheet at 31 December 2018 had been
restated, we estimated cGBP86.0m of right-of-use assets and
cGBP92.5m of associated liabilities would have been recognised in
the Group's balance sheet, resulting in a cGBP6.5m decline in net
assets.
The following tables summarises the actual impact of adoption of
the new standard, the net impact being broadly in line with that
estimate given in March 2019:
GBPm 30 June 2018
----------------------------- -----------------------------------------------------
As originally IFRS 16 Transition Restated
presented
Underlying P&L extract
Revenue 1,162.9 - 1,162.9
Cost of sales (1,029.9) - (1,029.9)
Gross profit 133.0 - 133.0
Net operating expenses (113.3) 1.2 (112.1)
Operating profit 19.7 1.2 20.9
Net finance costs (3.3) (1.6) (4.9)
----------------------------- ---------------- --------------------- ------------
Profit before taxation 16.4 (0.4) 16.0
----------------------------- ---------------- --------------------- ------------
Balance sheet extract
Right-of-use assets - 85.3 85.3
Freehold / long leasehold 114.9 (4.3) 110.6
Other 630.3 0.5 630.8
Total assets 745.2 81.5 826.7
Lease liabilities - 93.6 93.6
Other 544.0 (6.0) 538.0
Total liabilities 544.0 87.6 631.6
Net assets 201.2 (6.1) 195.1
----------------------------- ---------------- --------------------- ------------
Net cash / (debt) 0.9 (93.6) (92.7)
Full details of the impact of IFRS 16 on the 2019 Interim Report
and Accounts, including the restatement of the comparative period,
are set out in Note 3 'Changes in Accounting Policies and
Disclosures' to the financial statements below.
The impact of IFRS 16 on the Group's profit may vary (either
positively or negatively) dependent on the lease commitments either
assumed or exited by the Group in each financial period.
Revenue
Reported revenue increased by 1.8% to GBP1,183.3m (H1 2018:
GBP1,162.9m) with like-for-like revenue increasing by 0.9%. In
addition, both used vehicle and aftersales revenues continued to
show growth against the comparable period last year. Like-for-like
revenue from the sale of new vehicles (to both retail and fleet
customers) declined in the Period as a result of the declining UK
new car market.
Margin
Gross margin was maintained at 11.4% (H1 2018: 11.4%), with
higher new vehicle margins offsetting margin pressure in used
vehicles and aftersales. This positive margin performance in new
vehicle sales was driven by a combination of the Group's
achievement of our brand partners' sales targets without material
pre-registration activity and improved product mix in certain
brands compared to last year.
On a like-for-like basis, new vehicle margin improved by 73bps
to 7.7%. As a result, despite the decline in sales volumes of 0.4%,
like-for-like gross profit increased by GBP2.7m.
On a like-for-like basis, used vehicle gross margin at 6.6% was
62bps below the same period last year. Margin performance was
impacted by well documented declines in residual values in the
second quarter, partly resulting from an exceptionally strong
market in the previous year. The Group mitigated the impact of
these declines with strong controls over inventory levels and
rigorous application of our prudent 56 day stocking policy.
Like-for-like aftersales gross margin at 44.4% (H1 2018: 46.0%)
was impacted in part to an increased mix of lower margin parts
sales, which also experienced margin pressure, together with an
increase in operational costs.
Costs
Underlying operating costs of GBP114.9m were 2.5% higher than in
the same period last year, primarily driven by the impact of
acquisitions. Like-for-like costs of GBP112.3m increased by 1.6%
(2018: GBP110.5m,) an increase which was anticipated due to
on-going cost headwinds. The Group continues to face a number of
structural and inflationary costs which have been contained by
on-going tight control of costs.
Total finance costs of GBP5.0m were GBP0.1m higher than the same
period last year, driven by increased vehicle stocking charges as a
result of higher levels of consignment stock, including our newly
acquired sites.
During the Period, the Group incurred GBP0.4m of non-underlying
costs, primarily related to acquisitions, disposals and
restructuring.
Tax
The reported effective tax rate for the Period was 22.8% (H1
2018: 21.8%). The underlying effective tax rate for the Period was
22.6% (H1 2018: 21.9%).
Capital expenditure
Capital expenditure during the Period was GBP8.8m. This was
lower than originally expected due to the deferral of two large
scale capital expenditure projects, partially offset by the
purchase of the Northampton KODA freehold for GBP1.7m. At 30 June
2019, the Group had GBP123.9m of freehold / long-leasehold property
(30 June 2018: GBP116.6m), equivalent to GBP1.58 per share.
Financial position
The Group continues to be cash generative, with cash of GBP10.8m
generated in the Period, and the balance sheet remains strong. At
30 June 2019 the Group had adjusted net cash of GBP5.8m compared to
an adjusted net cash position of GBP0.9m at 30 June 2018 and net
debt of (GBP5.1m) at 31 December 2018. Reported net debt (post IFRS
16) at 30 June 2019 was GBP82.2m (H1 2018: GBP92.7m)
The Group's unutilised GBP120m revolving credit facility is in
place until May 2021 and provides financial flexibility to take
advantage of investment and growth opportunities when they
arise.
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 the impact of IFRS 16) of not more
than 1.25x net debt/EBITDA. This leverage may rise for a period of
time towards the Group's banking facility limit of not more than
3.0x (excluding the impact of IFRS 16) should an exceptional
investment opportunity arise.
Interim Dividend
The Group's recently revised dividend policy is for full year
dividends to be covered by between 2.5 to 3.5 times underlying
earnings and paid in an approximate one-third (interim dividend)
and two-thirds (final dividend) split, subject to the Group's
trading prospects being satisfactory and taking into account
potential investment opportunities.
The Board is pleased to announce an interim dividend of 2.85p
per share (2018 interim dividend: 2.15p), up 32.6% aided by the
revised dividend policy. The dividend will be paid by 20 September
2019 to shareholders who are on the Company's register at close of
business on 23 August 2019.
Summary and Outlook
Despite challenging market conditions, the Group has delivered a
strong H1 unit sales performance, ahead of the new retail, new
fleet and used car markets with underlying profit before tax in
line with the Board's expectations.
Whilst still early, our September order bank is building as
expected. However, 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.
Daksh Gupta
Chief Executive Officer
13 August 2019
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2019
Underlying Non-underlying Underlying Non-underlying
items items Total items items Total
2019 2019 2019 2018 2018 2018*
Restated Restated Restated
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Continuing
operations
Revenue 4 1,183,267 - 1,183,267 1,162,904 - 1,162,904
Cost of sales (1,048,240) - (1,048,240) (1,029,951) - (1,029,951)
Gross profit 135,027 - 135,027 132,953 - 132,953
---------------------- ------------------- ---------------------- ---------------------- ---------------------- --------------------
Net operating
expenses (114,872) (400) (115,272) (112,080) 268 (111,812)
---------------------- ---------------------- ---------------------- ---------------------- --------------------
Operating
profit 20,155 (400) 19,755 20,873 268 21,141
---------------------- ------------------- ---------------------- ---------------------- ---------------------- --------------------
Net finance
costs 7 (4,999) - (4,999) (4,877) (44) (4,921)
---------------------- ---------------------- ---------------------- ---------------------- --------------------
Profit before
taxation 5 15,156 (400) 14,756 15,996 224 16,220
---------------------- ------------------- ---------------------- ---------------------- ---------------------- --------------------
Taxation 8 (3,432) 72 (3,360) (3,500) (42) (3,542)
---------------------- ---------------------- ---------------------- ---------------------- --------------------
Profit from
continuing
operations
after
tax 11,724 (328) 11,396 12,496 182 12,678
====================== =================== ====================== ====================== ====================== ====================
Discontinued
operations
Profit from
discontinued
operations
after
tax 6 - - - - 589 589
Profit for the
year 11,724 (328) 11,396 12,496 771 13,267
====================== =================== ====================== ====================== ====================== ====================
Total
comprehensive
income for
the
year net of
tax 11,724 (328) 11,396 12,496 771 13,267
====================== =================== ====================== ====================== ====================== ====================
Earnings per
share
(EPS)
attributable
to equity
shareholders
of the parent
From
continuing
operations: Pence Pence Pence Pence
Basic 9 15.0 14.6 16.1 16.3
Diluted 9 14.7 14.3 15.7 15.9
From
continuing
and
discontinued
operations:
Basic 9 15.0 14.6 16.1 17.1
Diluted 9 14.7 14.3 15.7 16.6
*Prior year cost of sales and net operating expenses have been
adjusted by a reclassification from net operating expenses to cost
of sales to be consistent with presentation in the current year.
The net impact of which is less than GBP500,000.
The comparative figures have been restated on adoption of IFRS
16 Leases. Full details of the impact of adoption are included in
Note 3 'Changes in Accounting Policies and Disclosures'.
All activities of the Group in the current period are
continuing.
The above Condensed Consolidated Statement of Comprehensive
Income should be read in conjunction with the accompanying
notes.
Condensed Consolidated Balance Sheet
At 30 June 2019
30 June 30 June 31 December
2019 2018 2018
Restated Restated
Note (unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Non-current assets
Goodwill and other intangible
assets 12 115,465 121,493 112,178
Property, plant and equipment 13 154,210 143,309 151,200
Right-of-use assets 83,245 85,318 82,386
Investment property 2,590 2,590 2,590
Non-current financial assets 1,356 1,526 1,405
Deferred tax asset - 39 -
Total non-current assets 356,866 354,275 349,759
------------ ------------ ------------
Current assets
Inventories 376,429 351,412 384,005
Trade and other receivables 113,059 113,325 78,949
Cash and cash equivalents 11,938 7,687 1,174
Assets classified as held
for sale 797 - 797
Total current assets 502,223 472,424 464,925
------------ ------------ ------------
Total assets 859,089 826,699 814,684
------------ ------------ ------------
Non-current liabilities
Loans and borrowings 5,505 6,145 5,665
Lease liabilities 76,670 82,001 76,797
Trade and other payables 5,849 4,970 5,596
Provisions - 3,688 -
Deferred tax liabilities 19,830 19,340 19,505
Total non-current liabilities 107,854 116,144 107,563
------------ ------------ ------------
Current liabilities
Loans and borrowings 641 642 641
Lease liabilities 11,314 11,636 10,845
Trade and other payables 533,237 495,109 492,387
Provisions 2,441 5,198 7,795
Current tax liabilities 2,873 2,883 1,346
Total current liabilities 550,506 515,468 513,014
------------ ------------ ------------
Total liabilities 658,360 631,612 620,577
------------ ------------ ------------
Net assets 200,729 195,087 194,107
============ ============ ============
Shareholders' equity
Share capital 11 50,030 49,834 49,834
Share premium 19,672 19,672 19,672
Share-based payments reserve 11 1,487 1,581 1,570
Retained earnings 129,540 124,000 123,031
------------ ------------ ------------
Total equity 200,729 195,087 194,107
============ ============ ============
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2019
Share-based
Share Share payments Own shares Retained Total
Note capital premium reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 31
December
2017 as
originally
presented 49,531 19,672 2,608 - 119,323 191,134
=================== =================== =================== =================== ================= =================
Impact of change
in accounting
policies 3 - - - - (5,735) (5,735)
Restated balance
at 1
January 2018 49,531 19,672 2,608 - 113,588 185,399
=================== =================== =================== =================== ================= =================
Profit for the
period - - - - 13,267 13,267
Total
comprehensive
income - - - - 13,267 13,267
------------------- ------------------- ------------------- ------------------- ----------------- -----------------
Transactions
with owners
Dividends paid 10 - - - - (3,309) (3,309)
Issue of share
capital 11 303 - - (303) - -
Exercise of
share options 11 - - (1,567) 303 504 (760)
Share based
payments
charge - - 540 - - 540
Acquisition of
non-controlling
interest in
subsidiaries 12 - - - - (50) (50)
Balance at 30
June 2018
(unaudited) 49,834 19,672 1,581 - 124,000 195,087
=================== =================== =================== =================== ================= =================
Profit for the
period - - - - 705 705
Total
comprehensive
income - - - - 705 705
------------------- ------------------- ------------------- ------------------- ----------------- -----------------
Transactions
with owners
Dividends paid - - - - (1,674) (1,674)
Share based
payments
charge - - (11) - - (11)
Balance at 31
December
2018 (audited) 49,834 19,672 1,570 - 123,031 194,107
=================== =================== =================== =================== ================= =================
Balance at 1
January
2019 49,834 19,672 1,570 - 123,031 194,107
=================== =================== =================== =================== ================= =================
Profit for the
period - - - - 11,396 11,396
Total
comprehensive
income - - - - 11,396 11,396
------------------- ------------------- ------------------- ------------------- ----------------- -----------------
Transactions
with owners
Dividends paid 10 - - - - (4,995) (4,995)
Issue of share
capital 11 196 - - (196) - -
Exercise of
share options 11 - - (863) 196 108 (559)
Share based
payments
charge - - 780 - - 780
Balance at 30
June 2019
(unaudited) 50,030 19,672 1,487 - 129,540 200,729
=================== =================== =================== =================== ================= =================
Condensed Consolidated Cash Flow Statement
For the six months ended 30 June 2019
2019 2018
Restated
Note (unaudited) (unaudited)
GBP'000 GBP'000
Operating profit
- continuing operations 19,755 21,141
- discontinued operations - 589
Adjustments for:
Depreciation and amortisation 5 9,864 8,777
Share-based payments charge 865 715
Profit on disposal of assets classified
as held for sale 5/6 - (268)
Profit on disposal of property
plant and equipment 5 (6) (25)
Profit on disposal and remeasurement
of right-of-use assets and lease
liabilities 5 (635) (190)
Reversal of loss on impairment
of property, plant and equipment 5 - (14)
Loss on impairment of right-of
use assets 5 112 -
Other non-cash items (150) -
Profit on disposal of subsidiary 6 - (589)
Cash flows from operating activities 29,805 30,136
------------ ------------
Decrease in inventories 10,059 49,848
Increase in trade and other receivables (33,225) (21,860)
Increase/(decrease) in trade and
other payables 40,046 (31,340)
Decrease in provisions (5,749) (683)
Total cash flows generated by operations 40,936 26,101
------------ ------------
Tax paid (2,333) (2,774)
Interest paid on lease liabilities (1,547) (1,621)
Other net finance costs (3,452) (3,300)
Net cash inflow from operating
activities 33,604 18,406
------------ ------------
Investing activities
Purchase of property, plant, equipment
and software 12/13 (7,762) (8,555)
Acquisition of businesses, net
of cash acquired 12 (5,582) -
Acquisition of non-controlling
interest in subsidiaries 12 - (50)
Net cash flow from sale of discontinued
operation - 589
Proceeds from disposal of property,
plant and equipment 473 153
Proceeds from disposal of assets
classified as held for sale - 1,018
Net cash outflow from investing
activities (12,871) (6,845)
------------ ------------
Financing activities
Proceeds from borrowings 20,000 15,000
Repayment of borrowings (20,160) (15,321)
Repayment of lease liabilities (4,106) (4,143)
Dividends paid 10 (4,995) (3,309)
Settlement of exercised share awards 11 (708) (968)
Net cash outflow from financing
activities (9,969) (8,741)
------------ ------------
Net increase in cash and cash equivalents 10,764 2,820
Cash and cash equivalents at 1
January 1,174 4,867
Cash and cash equivalents at period
end 11,938 7,687
============ ============
Net Debt Reconciliation
For the six months ended 30 June 2019
2019 2018
Restated
(unaudited) (unaudited)
GBP'000 GBP'000
Reconciliation of net cash
flow to movement in net
debt
Net increase in net cash
and cash equivalents 10,764 2,820
Proceeds from drawdown of
RCF (20,000) (15,000)
Repayment of drawdown of
RCF 20,000 15,000
Repayment of other borrowings 160 321
Change in lease liability
commitments 3,764 8,226
Repayment of lease liabilities (4,106) (4,143)
Decrease in net debt 10,582 7,224
Opening net debt (92,774) (99,961)
Net debt at period end (82,192) (92,737)
============ ============
Lease liabilities (87,984) (93,637)
Adjusted net cash at period
end (non GAAP measure) 5,792 900
============ ============
Net debt at period end consists
of:
Cash and cash equivalents 11,938 7,687
Loans and borrowings (6,146) (6,787)
Lease liabilities (87,984) (93,637)
Closing net debt (82,192) (92,737)
============ ============
Notes to the Condensed Consolidated Financial Statements
1. General information
Marshall Motor Holdings Plc (the Company) is incorporated and
domiciled in the United Kingdom. The Company is a public limited
company, limited by shares, whose shares are listed on the
Alternative Investment Market (AIM) of the London Stock Exchange.
The Company is registered in England under the Companies Act 2006
(registration number 02051461) with the address of the registered
office being: Airport House, The Airport, Cambridge, CB5 8RY,
United Kingdom.
These interim condensed consolidated financial statements were
authorised for issue by the Board of Directors on 12 August
2019.
Basis of preparation
The interim condensed consolidated financial statements for the
six months ended 30 June 2019 have been prepared in accordance with
IAS 34 Interim Financial Reporting as adopted by the European
Union. They do not include all the information and disclosures
required for full annual financial statements and should be read in
conjunction with the Group's consolidated financial statements for
the year ended 31 December 2018. A copy of the full Annual Report
and Accounts for the year ended 31 December 2018 can be found on
the Marshall Motor Holdings Plc website at: www.mmhplc.com.
The interim condensed consolidated financial statements for the
six months ended 30 June 2019, and for the comparative six months
ended 30 June 2018, are unaudited but have been reviewed by the
Auditor. A copy of their Review Report is set out at the end of
these financial statements. The financial information for the year
ended 31 December 2018 does not constitute the Group's statutory
financial statements for that period as defined in section 434 of
the Companies Act 2006, but is instead an extract from those
financial statements. The Group's financial statements for the year
ended 31 December 2018 were authorised for issue by the Board of
Directors on 12 March 2019 and have been delivered to the Registrar
of Companies. The Auditor's Report on those financial statements
contained an unqualified opinion, did not draw attention to any
matters by way of emphasis and did not contain any statement under
section 498 of the Companies Act 2006.
During the period the Group has adopted the amendments to IFRS 3
Business Combinations, IAS 12 Income Taxes and IAS 23 Borrowing
Costs as well as the interpretation of IFRIC 23 Uncertainty over
Income Tax Treatment which has had no impact on the financial
statements. The Group has also adopted the new lease accounting
standard; IFRS 16 Leases. Full details of the impact of adoption
are set out in Note 3 'Changes in Accounting Policies and
Disclosures'.
The interim condensed consolidated financial statements are
prepared in Sterling which is the presentational currency of the
Group. All values are rounded to the nearest thousand pounds
(GBP'000) except where otherwise indicated.
Principal risks and uncertainties
The principal risks and uncertainties for the six months ended
30 June 2019 are consistent with those set out in the Marshall
Motor Holdings Plc 2018 Annual Report and Accounts dated 12 March
2019. These principal risks and uncertainties are expected to be
consistent for the year ending 31 December 2019.
Progress of the European Union exit negotiations continues to be
reviewed with appropriate actions taken in response to changes in
economic conditions. The Company is not a direct importer of
vehicles and parts from the EU; it makes purchases from
manufacturers' UK national sales companies (NSCs) which have
primary responsibility for managing imports to the UK. As a result,
the Company continues to maintain close relationships with
manufacturers and to review manufacturers' Brexit preparations.
Going concern
The interim condensed consolidated financial statements are
prepared on the going concern basis. 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
that these interim condensed consolidated financial statements are
signed. For these reasons they continue to adopt the going concern
basis in preparing the interim condensed consolidated financial
statements.
Notes to the Condensed Consolidated Financial Statements
2. Accounting policies
Except where disclosed otherwise in Note 3 'Changes in
Accounting Policies and Disclosures', the accounting policies as
well as the critical accounting judgements, estimates and
assumptions applied are consistent with those set out in the
Marshall Motor Holdings Plc 2018 Annual Report and Accounts dated
12 March 2019. These accounting policies and critical accounting
judgements, estimates and assumptions are expected to apply for the
year ending 31 December 2019.
3. Changes in accounting policies and disclosures
New standards, amendments and interpretations adopted by the
Group
The following amendments to existing standards became effective
on 1 January 2019 and have been adopted in the consolidated
financial statements for the first time during the six months ended
30 June 2019. These have been assessed as having no financial or
disclosure impact on the numbers presented.
-- IFRIC Interpretation 23 Uncertainty over Income Tax Treatment
-- IFRS 3 Business Combinations
-- IAS 12 Income Taxes
-- IAS 23 Borrowing Costs
The following new standard became effective on 1 January 2019
for the current reporting period. The Group had to change its
accounting policies and make adjustments as a result of adopting
the following new standard:
-- IFRS 16 Leases
The impact of the adoption of this standard and the new
accounting policy are disclosed below.
Three other standards, amendments and interpretations apply for
the first time with effect from 1 January 2019; however, they do
not have an impact on the interim condensed consolidated financial
statements of the Group.
Impact on current period of the adoption of new standards,
amendments and interpretations
a) IFRS 16 Leases - impact of adoption
The Group has applied IFRS 16 issued in January 2016 with a date
of initial application of 1 January 2019. IFRS 16 supersedes IAS 17
Leases, IFRIC 4 Determining whether an Arrangement Contains a
Lease, SIC-15 Operating Lease Incentives and SIC-27 Evaluating the
Substance of Transactions Involving the Legal Form of a Lease.
The Group has applied IFRS 16 using the full retrospective
approach, therefore, the Group applied IFRS 16 at the date of
initial application as if the standard had already been effective
at the commencement date of the Group's existing lease contracts.
As a result, the comparative information in these interim condensed
consolidated financial statements has been restated. The nature and
effects of the key changes to the Group's accounting policies
resulting from the adoption of IFRS 16 are summarised below.
Definition of a lease
Previously the Group determined at contract inception whether an
arrangement is or contains a lease under IFRIC 4. Under IFRS 16,
the Group assesses whether a contract is or contains a lease based
on the definition of a lease as explained in the accounting
policy.
On transition to IFRS 16, the Group elected to apply the
practical expedient to grandfather the assessment of which
transactions are leases. The Group has applied the definition of a
lease under IFRS 16 to contracts that have been entered into, or
changed, on or after 1 January 2019.
Group as lessee
As a lessee, the Group previously classified leases as operating
or finance leases based on its assessment of whether the lease
transferred significantly all the risks and rewards incidental to
ownership of the underlying asset to the Group. Under IFRS 16, the
Group recognises in the Consolidated Balance Sheet right-of-use
assets and lease liabilities for most leases.
The Group has elected to apply the recognition exemptions for
lease contracts that do not contain a purchase option and have a
lease term of 12 months or less and/or are for underlying assets
with a low value.
For leases not covered by these recognition exemptions, the
Group recognised right-of-use assets and lease liabilities on
adoption of IFRS 16. The Group also tested these right-of-use
assets for impairment and recognised an impairment loss against
some right-of-use assets on transition and when restating the
comparative 2018 period.
Notes to the Condensed Consolidated Financial Statements
3. Changes in accounting policies and disclosures (continued)
Impact on current period of the adoption of new standards,
amendments and interpretations (continued)
a) IFRS 16 Leases - impact of adoption (continued)
Group as lessor
Under IFRS 16, lessor accounting continues to require lessors to
classify leases as either operating leases or finance leases using
similar principles as were used under IAS 17. As a result, with the
exception of sub-lease arrangements, the Group is not required to
make any adjustments on transition to IFRS 16 for leases in which
it acts as a lessor.
Under IFRS 16, the Group is required to assess the
classification of a sub-lease with reference to the right-of-use
asset, not the underlying asset. On transition, the Group
reassessed the classification of sub-lease contracts previously
classified as an operating lease under IAS 17. The Group concluded
that two sub-leases are finance leases under IFRS 16, and accounted
for these subleases as new finance leases entered into at the date
of initial application.
Impacts on financial statements
As described above, June 2018 and December 2018 comparatives
have been restated following the adoption of IFRS 16. The following
tables on pages 21 to 23 summarise the restatements arising on
adoption of IFRS 16 in the Group's interim condensed consolidated
financial statements.
Transition adjustment
The following table summarises the impact, net of tax, of
transition to IFRS 16 on reserves and retained earnings as at 1
January 2018. Full details of the first time adoption of IFRS 9 are
set out in the Marshall Motor Holdings plc 2018 Annual Report and
Accounts.
GBP'000
Balance at 31 December 2017 - as previously reported 119,323
Cumulative surplus of IFRS 16 depreciation and interest
charges over IAS 17 lease rentals (6,893)
Deferred tax credit on IFRS 16 transition adjustment 1,158
Opening balance as at 1 January 2018 - under IFRS
16 113,588
===================
Taxation
A deferred tax liability arises on the right-of-use asset and a
deferred tax asset arises on the corresponding lease liabilities.
These meet the conditions for offsetting and are presented net on
the Condensed Consolidated Balance Sheet. The net effect is a
deferred tax asset which has been recognised as it is probable that
future taxable profits will be available against which the deferred
tax asset can be offset.
Consolidated balance sheet
Right-of-use assets and corresponding lease liabilities have
been recognised and presented separately in the Consolidated
Balance Sheet. Long leasehold assets previously included under
property, plant and equipment have been derecognised as well as any
rent prepayments and accruals relating to leases previously
classified as operating leases. In addition, the portion of vacant
property provisions relating to operating lease rents has been
derecognised and replaced with impairments of right-of-use assets
in respect of leases of vacant premises. The net effect of all
these adjustments has been recognised in retained earnings.
Notes to the Condensed Consolidated Financial Statements
3. Changes in accounting policies and disclosures (continued)
Impact on current period of the adoption of new standards,
amendments and interpretations (continued)
a) IFRS 16 Leases - impact of adoption (continued)
Impacts on financial statements (continued)
Consolidated balance sheet (continued)
Condensed 31 December
Consolidated 30 June 2018 30 June 2018 - As 31 December
Balance Sheet - As originally IFRS 16 2018 - originally IFRS 16 2018
(extract) presented Transition Restated presented Transition Restated
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Goodwill and
other
intangible
assets 121,545 (52) 121,493 112,202 (24) 112,178
Property,
plant
and
equipment 147,878 (4,569) 143,309 155,758 (4,558) 151,200
Right-of-use
assets - 85,318 85,318 - 82,386 82,386
Investment
property 2,590 - 2,590 2,590 - 2,590
Finance lease
receivables - 1,729 1,729 - 1,500 1,500
Other current
assets 473,143 (883) 472,260 465,658 (828) 464,830
Total assets 745,156 81,543 826,699 736,208 78,476 814,684
--------------------- ------------------ ----------------- ------------------------ ------------------ ------------------
Loans and
borrowings 6,787 - 6,787 6,306 - 6,306
Lease
liabilities - 93,637 93,637 - 87,642 87,642
Provisions 12,147 (3,261) 8,886 7,926 (131) 7,795
Trade and
other
payables 501,591 (1,512) 500,079 499,455 (1,472) 497,983
Deferred tax
liabilities 20,576 (1,236) 19,340 20,787 (1,282) 19,505
Current tax
liabilities 2,883 - 2,883 1,346 - 1,346
Total
liabilities 543,984 87,628 631,612 535,820 84,757 620,577
--------------------- ------------------ ----------------- ------------------------ ------------------ ------------------
Net assets 201,172 (6,085) 195,087 200,388 (6,281) 194,107
===================== ================== ================= ======================== ================== ==================
Retained
earnings 130,085 (6,085) 124,000 129,312 (6,281) 123,031
Other
reserves 71,087 - 71,087 71,076 - 71,076
Total equity 201,172 (6,085) 195,087 200,388 (6,281) 194,107
===================== ================== ================= ======================== ================== ==================
Notes to the Condensed Consolidated Financial Statements
3. Changes in accounting policies and disclosures (continued)
Impact on current period of the adoption of new standards,
amendments and interpretations (continued)
a) IFRS 16 Leases - impact of adoption (continued)
Impacts on financial statements (continued)
Consolidated statement of comprehensive income
The depreciation expense has increased due to the charge on the
newly recognised right-of-use assets, net of the reduced charge
following the derecognition of long leasehold property assets.
Rental charges have reduced following the reclassification of most
leases as on balance sheet. Net finance costs have increased due to
the interest charge on the newly recognised lease liabilities.
30 June 2018
- As originally 30 June 2018
presented IFRS 16 Transition - Restated
GBP'000 GBP'000 GBP'000
Revenue 1,162,904 - 1,162,904
Cost of sales (1,029,951) - (1,029,951)
Gross profit 132,953 - 132,953
Net operating expenses (113,005) 1,193 (111,812)
Operating profit 19,948 1,193 21,141
Net finance costs (3,300) (1,621) (4,921)
Profit before taxation 16,648 (428) 16,220
Taxation (3,620) 78 (3,542)
Profit from continuing operations
after tax 13,028 (350) 12,678
==================== ================== ==================
Profit from discontinued operations
after tax 589 - 589
Profit for the period 13,617 (350) 13,267
==================== ================== ==================
Continuing underlying profit 12,802 (306) 12,496
Non-underlying profit 815 (44) 771
Profit for the period 13,617 (350) 13,267
==================== ================== ==================
There is no material impact on other comprehensive income or on
basic and diluted earnings per share.
Consolidated cash flow statement
The adoption of IFRS 16 changes neither the timing nor amount of
the Group's cash flows. The only changes are presentational. The
classification of lease payments changes from being shown
exclusively as an operating cash flow. Lease payments become a
combination of operating cash flows (reflecting the interest
portion of lease payments) and financing cash flows (reflecting the
principal portion of the lease liability). The following table
shows the reclassification between categories of cash flows for the
six months ended 30 June 2018.
30 June 2018
GBP'000
Increase in net cash inflows from operating activities 3,860
Decrease in net cash outflows from investing activities 283
Increase in net cash outflows from financing activities (4,143)
Net impact on increase in cash and cash equivalents -
=====================
Notes to the Condensed Consolidated Financial Statements
3. Changes in accounting policies and disclosures (continued)
Impact on current period of the adoption of new standards,
amendments and interpretations (continued)
b) IFRS 16 Leases - accounting policies applied from 1 January 2018
Group as lessee
The Group recognises a right-of-use asset and a lease liability
at the lease commencement date.
Right-of-use asset
The right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability adjusted for
any lease payments made at or before the commencement date, plus
any initial direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to restore the
underlying asset or the site on which it is located, less any lease
incentives received.
The right-of-use asset is subsequently depreciated using the
straight-line method from the commencement date to the earlier of
the end of the useful life of the right-of-use asset or the end of
the lease term. The estimated useful lives of right-of-use assets
are determined on the same basis as those of property, plant and
equipment. In addition, the right-of-use asset is periodically
reduced by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.
Lease liability
The lease liability is initially measured at the present value
of the lease payments to be made over the lease term that have not
been paid at the lease commencement date. When calculating the
present value, the lease liability is discounted using the interest
rate implicit in the lease, or, if that rate cannot be readily
determined, the Group's incremental borrowing rate.
Lease payments included in the measurement of the lease
liability comprise:
- fixed payments, including in-substance fixed payments, less
any lease incentives receivable;
- variable lease payments that depend on an index or a rate,
initially measured using the index or rate as at the lease
commencement date;
- amounts expected to be payable under a residual value
guarantee;
- the exercise price under a purchase option that the Group is
reasonably certain to exercise;
- lease payments in an optional renewal period if the Group is
reasonably certain to exercise an extension option; and
- penalties for early termination of a lease unless the Group is
reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the
effective interest method. It is remeasured when there is a change
in future lease payments arising from a change in an index or rate,
if there is a change in the Group's estimate of the amount expected
to be payable under a residual value guarantee or if the Group
changes its assessment of whether it will exercise a purchase,
extension or termination option.
When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying amount of the
right-of-use asset, or is recorded in profit or loss if the
carrying amount of the right-of-use asset has been reduced to
zero.
Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use assets and
lease liabilities for short-term leases and leases of low-value
assets. Short-term leases are those that do not contain a purchase
option and have a lease term of 12 months or less. Low value assets
are those with a value below GBP5,000. The Group recognises on a
straight-line basis over the lease term the lease payments
associated with these leases in net operating expenses in the
Consolidated Statement of Comprehensive Income.
Notes to the Condensed Consolidated Financial Statements
3. Changes in accounting policies and disclosures (continued)
b) IFRS 16 Leases - accounting policies applied from 1 January 2018 (continued)
Group as lessor
The Group only acts as a lessor in the context of sub-lease
arrangements. When the Group is an intermediate lessor, it accounts
for its interests in the head lease and the sub-lease separately.
It assesses the lease classification of a sub-lease as being either
a finance lease or an operating lease with reference to the
right-of-use asset arising from the head lease, not with reference
to the underlying asset. To classify each sub-lease, an overall
assessment is made as to whether the lease transfers to the lessee
substantially all of the risks and rewards of ownership incidental
to ownership of the right-of-use asset. If this is the case, then
the lease is a finance lease; if not, then it is an operating
lease. As part of this assessment, the Group considers certain
indicators such as whether the lease is for the major part of the
economic life of the asset. If a head lease is a short-term lease
to which the Group applies the exemption described above, then it
classifies the sub-lease as an operating lease.
If an arrangement contains lease and non-lease components, the
Group applies IFRS 15 Revenue from Contracts with Customers to
allocate the consideration in the contract.
The Group recognises lease payments received under operating
leases as income on a straight-line basis over the lease term as
part of other income presented within net operating expenses in the
Consolidated Statement of Comprehensive Income.
4. Segmental information
IFRS 8 Operating Segments requires operating segments to be
consistent with the internal management reporting provided to the
Chief Operating Decision Maker who is responsible for allocating
resources and assessing the performance of the operating segments.
The Group considers the Chief Executive Officer to be the Chief
Operating Decision Maker.
The Group has identified its key product and service lines as
being its operating segments because both performance and strategic
decisions are analysed at this level. The IFRS 8 aggregation
criteria have been met as a result of the Group's key product and
service lines sharing common characteristics such as; similar types
of customer for the products and services, similar nature of the
product and service offerings, similar methods used to distribute
the products and provide the services and similar regulatory and
economic environment. As a result of these criteria being
satisfied, the Group's operating segments constitute one reportable
segment (retail) and all segmental information has been disclosed
as such. The retail segment includes sales of new and used
vehicles, together with the associated ancillary aftersales
services of; servicing, body shop repairs and parts sales.
The Group has concluded that rental income arising from
investment properties does not meet the quantitative thresholds
required to constitute a reportable segment as defined in IFRS 8.
Due to the non-material nature of these amounts, they are combined
with the retail segment rather than being disclosed separately. As
a result, all of the Group's activities are disclosed within the
one reportable segment - the retail segment.
Geographical information
Revenue earned from sales is disclosed by origin and is not
materially different from revenue by destination. All of the
Group's revenue is generated in the United Kingdom.
Notes to the Condensed Consolidated Financial Statements
4. Segmental information (continued)
Information about reportable segment
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, vehicle
service and other related services.
The following tables show the disaggregation of revenue by major
product/service lines for continuing operations:
Revenue Gross Profit
For the half year ended 30 June
2019 (unaudited) GBP'000 mix* GBP'000 mix*
New Car 569,120 47.1% 43,590 32.3%
Used Car 509,599 42.2% 33,494 24.9%
Aftersales 129,518 10.7% 57,762 42.8%
Internal / Other (24,970) - 181 -
Total 1,183,267 100.0% 135,027 100.0%
========= ====== ======= ======
Revenue Gross Profit^
For the six months ended 30 June
2018 (unaudited) GBP'000 mix* GBP'000 mix*
New Car 584,555 49.3% 40,515 30.5%
Used Car 474,569 40.0% 34,175 25.7%
Aftersales 126,440 10.7% 58,137 43.8%
Internal / Other (22,660) - 126 -
Total 1,162,904 100.0% 132,953 100.0%
============ ======== =============== ============
*mix calculation excludes internal / other sales
^Prior year cost of sales and net operating expenses have been
adjusted by a reclassification from net operating expenses to cost
of sales to be consistent with presentation in the current year.
The net impact of which is less than GBP500,000.
5. Profit before taxation
Profit before taxation is arrived at after charging /
(crediting):
Six months Six months
ended ended
30 June 2019 30 June 2018
Restated
(unaudited) (unaudited)
GBP'000 GBP'000
Depreciation on property, plant and
equipment (note 13) 5,152 4,331
Depreciation of right-of-use assets 4,491 4,307
Amortisation of other intangibles 221 139
Profit on disposal of assets classified
as held for sale (note 6) - (268)
Profit on disposal of property plant
and equipment (6) (25)
Profit on disposal and remeasurement
of right-of-use assets and lease liabilities (635) (190)
Reversal of loss on impairment of property,
plant and equipment (note 13) - (14)
Impairment loss on right-of-use assets 112 -
Operating lease rentals - short term
leases / low value assets 851 1,064
Notes to the Condensed Consolidated Financial Statements
6. Non-underlying items
Six months Six months
ended ended
30 June 30 June
2019 2018
Restated
(unaudited) (unaudited)
GBP'000 GBP'000
Continuing operations
Acquisition costs (159) -
Restructuring costs (137) (44)
Profit on disposal of assets classified as
held for sale - 268
Other (104) -
(400) 224
Discontinued operations
Profit on disposal of subsidiary - 589
Non-underlying items (400) 813
=========== ===========
Acquisition costs
See Note 12 'Goodwill and Other Intangible Assets' for further
details of the transactions giving rise to the acquisition
costs.
Other non-underlying items
All other expenses disclosed in non-underlying items are a
continuation of items disclosed in previous periods. More
information about the non-underlying items in the year ended 31
December 2018 is available in the 2018 Annual Report and Accounts
available at www.mmhplc.com.
7. Net finance costs
Six months
Six months ended
ended 30 June
30 June 2019 2018
Restated
(unaudited) (unaudited)
GBP'000 GBP'000
Interest income on short term bank deposits - (11)
Finance lease interest receivable (30) (35)
Stock financing charges and other interest
including acquisitions 3,015 2,857
Interest payable on lease liabilities 1,547 1,656
Interest payable on bank borrowings 467 454
Net finance costs 4,999 4,921
============= ===========
8. Taxation
The tax charge for the six months ended 30 June 2019 is
recognised based on best estimates of the average annual effective
tax rate expected for the full financial year, adjusted for the tax
impact of any discrete items arising in the period. The estimated
average annual restated effective tax rate used for the six months
to 30 June 2019 is 22.6% (restated six months ended 30 June 2018:
21.9%).
The reported effective tax rate for the six months ended 30 June
2019 is 22.8% (restated six months ended 30 June 2018: 21.8%). The
underlying effective tax rate for the six months ended 30 June 2019
is 22.6% (restated six months ended 30 June 2018: 21.9%).
Notes to the Condensed Consolidated Financial Statements
9. Earnings per share
Basic and diluted earnings per share are calculated by dividing
the earnings attributed to equity shareholders by the weighted
average number of ordinary shares during the year and the diluted
weighted average number of ordinary shares in issue in the year
after taking account of the dilutive impact of shares under option
of 2,775,357 (June 2018: 2,757,186, December 2018: 2,423,249).
Underlying earnings per share are based on basic earnings per
share adjusted for the impact of non-underlying items.
Six months Six months
ended ended
30 June 2019 30 June 2018
Restated
(unaudited) (unaudited)
GBP'000 GBP'000
From continuing operations
Underlying net profit attributable to equity
holders of the parent 11,724 12,496
Non-underlying items after tax (328) 182
Net profit attributable to equity holders
of the parent 11,396 12,678
===================== =====================
Six months Six months
ended ended
30 June 2019 30 June 2018
Restated
(unaudited) (unaudited)
GBP'000 GBP'000
From continuing and discontinued operations
Underlying net profit attributable to equity
holders of the parent 11,724 12,496
Non-underlying items after tax (328) 771
Net profit attributable to equity holders
of the parent 11,396 13,267
===================== =====================
Six months Six months
ended ended
30 June 2019 30 June 2018
Thousands Thousands
Number of shares
Weighted average number of ordinary shares
for the purpose of basic EPS 78,018 77,604
Effect of dilutive potential ordinary shares:
share options 1,822 2,241
Weighted average number of ordinary shares
for the purpose of diluted EPS 79,840 79,845
Six months Six months
ended ended
30 June 2019 30 June 2018
Pence Pence
From continuing operations
Basic underlying earnings per share 15.0 16.1
Basic earnings per share 14.6 16.3
Diluted underlying earnings per share 14.7 15.7
Diluted earnings per share 14.3 15.9
From continuing and discontinued operations
Basic underlying earnings per share 15.0 16.1
Basic earnings per share 14.6 17.1
Diluted underlying earnings per share 14.7 15.7
Diluted earnings per share 14.3 16.6
Notes to the Condensed Consolidated Financial Statements
10. Dividends
An interim dividend of 2.85p per share will be paid by 20
September 2019 to shareholders who are on the Company's register at
close of business on 23 August 2019.
An interim dividend of GBP1,674,000 in respect of the year ended
31 December 2018 was paid in September 2018. This represented a
payment of 2.15p per ordinary share in issue at that time. A final
dividend of GBP4,995,000 for the year ended 31 December 2018 was
paid in May 2019. This represented a payment of 6.39p per share in
issue, giving a full year dividend of 8.54p.
11. Share-based payments
In April 2019 the second tranche of the IPO Performance Awards
vested and became exercisable. On 2 April 2019, all option holders
exercised these options. As such, 306,795 ordinary shares of 64p
were issued. During the period, the decision was made for a portion
of the share options being exercised to be settled in cash rather
than being equity-settled. The total value of cash-settled
transactions is GBP708,000.
In April 2018, the third tranche of the IPO Restricted Share
Awards as well as the first tranche of the IPO Performance Awards
vested and became exercisable. On 11 April 2018, all option holders
exercised these options as well as the second tranche of the IPO
Restricted Awards which had previously vested and become
exercisable in the prior period. As such, 472,791 ordinary shares
of 64p were issued. During the period, the decision was made for a
portion of the share options being exercised to be settled in cash
rather than being equity-settled. The total value of cash-settled
transactions is GBP968,000.
12. Goodwill and other intangible assets
Six months
Six months ended Year ended
ended 30 June 31 December
30 June 2019 2018 2018
Restated Restated
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Net book value
At the beginning of the period 112,178 121,515 121,515
Net additions 3,476 117 260
Net amortisation charge for the
period (189) (139) (295)
Impairment - - (9,302)
At the end of the period 115,465 121,493 112,178
============= =========== ============
The carrying value of goodwill and other intangible assets
principally consists of goodwill and franchise agreements of
GBP114.6m (June 2018: GBP120.8m, December 2018: GBP111.5m).
Acquisitions - current period
On 31 January 2019 the Group acquired the trade and assets of
two KODA dealerships located in Leicester and Nottingham. These
acquisitions are part of the Group's stated strategy to grow with
existing brand partners in new geographic territories by adding
further sites in excellent locations that are contiguous to the
Group's existing KODA sites.
On 28 February 2019 the Group acquired the trade and assets of
four KODA dealerships in Northampton, Bedford, Letchworth and
Harlow. These acquisitions are part of the Group's stated strategy
to grow with existing brand partners in new geographic territories
by adding further sites in excellent locations that are contiguous
to the Group's existing KODA sites.
The estimated identifiable assets and liabilities at the date of
the acquisitions are stated at their provisional fair value as set
out below. The goodwill arising on acquisition is attributed to the
expected synergies and benefits associated with the increased brand
representation which has resulted in the Group becoming the UK's
largest KODA retailer.
Notes to the Condensed Consolidated Financial Statements
12. Goodwill and other intangible assets (continued)
Acquisitions - current period (continued)
On 31 January 2019:
NBV of net Fair value
assets acquired adjustments Total
GBP'000 GBP'000 GBP'000
Property, plant and equipment 209 - 209
Right-of-use assets - 1,560 1,560
Inventories 423 - 423
Trade and other payables (102) - (102)
Lease liabilities - (1,560) (1,560)
---------------- ------------ -------
Net assets acquired 530 - 530
Goodwill 600 - 600
Total cash consideration 1,130 - 1,130
================ ============ =======
The results of the acquired KODA dealerships were consolidated
into the Group's results from 31 January 2019. For the period from
acquisition to 30 June 2019, the revenues and the loss before tax
generated by these dealerships were immaterial in the context of
the Group's revenues and profit before tax.
If the acquisition had taken effect at the beginning of the
reporting period in which the acquisition occurred (1 January
2019), on a pro forma basis, the change in revenue and profit
before tax of the combined Group for the six months ended 30 June
2019 would have been immaterial in the context of the Group.
On 28 February 2019:
NBV of net Fair value
assets acquired adjustments Total
GBP'000 GBP'000 GBP'000
Property, plant and equipment 527 (21) 506
Right-of-use assets - 2,921 2,921
Inventories 2,060 - 2,060
Trade and other payables (335) - (335)
Lease liabilities - (2,771) (2,771)
Provisions - (552) (552)
---------------- ------------ -------
Net assets acquired 2,252 (423) 1,829
Goodwill 2,200 423 2,623
Total cash consideration 4,452 - 4,452
================ ============ =======
The results of the acquired KODA dealerships were consolidated
into the Group's results from 28 February 2019. For the period from
acquisition to 30 June 2019, the revenues and the loss before tax
generated by these dealerships were immaterial in the context of
the Group's revenues and profit before tax.
If the acquisition had taken effect at the beginning of the
reporting period in which the acquisition occurred (1 January
2019), on a pro forma basis, the change in revenue and profit
before tax of the combined Group for the six months ended 30 June
2019 would have been immaterial in the context of the Group.
Notes to the Condensed Consolidated Financial Statements
12. Goodwill and other intangible assets (continued)
Acquisitions - current period (continued)
Transaction costs arising on acquisitions in 2019 totalled
GBP159,000. These costs have been recognised in net operating
expenses in the Consolidated Statement of Comprehensive Income and
are part of operating cash flows in the Consolidated Cash Flow
Statement.
Acquisitions - prior period purchase of non-controlling
interests
On 22 February 2018, the Group acquired the remaining 1% of the
share capital of the following subsidiary undertakings; Marshall of
Peterborough limited, Marshall of Ipswich Limited and Marshall of
Stevenage Limited, taking the Group's shareholdings in these
entities up to 100%. Total consideration for these shares amounted
to GBP50,000; the value of consideration in excess of the carrying
value of the non-controlling interests acquired has been recognised
in retained earnings.
13. Property, plant and equipment
Freehold
and long
leasehold
land and Leasehold Plant and Assets under
buildings improvements equipment construction Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the half year ended
30 June 2019 (unaudited)
Cost
At 1 January 2019 122,822 22,040 39,909 9,501 194,272
Additions at cost 2,505 267 2,315 3,009 8,096
Additions on acquisition - 397 318 - 715
Disposals - (227) (457) - (684)
Transfers 9,840 193 1,239 (11,272) -
Transfer to prepayments - (200) - - (200)
At 30 June 2019 135,167 22,470 43,324 1,238 202,199
---------- ------------- ---------- ------------- -------
Accumulated depreciation
At 1 January 2019 11,596 6,166 25,310 - 43,072
Charge for the period 932 996 3,224 - 5,152
Disposals - (3) (214) - (217)
Transfer to prepayments - (18) - - (18)
At 30 June 2019 12,528 7,141 28,320 - 47,989
---------- ------------- ---------- ------------- -------
Net book value
At 30 June 2019 122,639 15,329 15,004 1,238 154,210
========== ============= ========== ============= =======
At 30 June 2019, the Group had capital commitments totalling
GBP4.5m relating to ongoing construction projects.
Notes to the Condensed Consolidated Financial Statements
13. Property, plant and equipment (continued)
Freehold
and long
leasehold Assets
land and Leasehold Plant and under
buildings improvements equipment construction Total
Restated Restated Restated
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the half year ended
30 June 2018 (unaudited)
Cost
At 1 January 2018 116,994 17,684 38,544 5,123 178,345
Additions at cost 1,676 110 1,375 6,461 9,622
Additions on acquisition - - - - -
Disposals - (837) (1,991) - (2,828)
Transfers 2,831 1,515 1,243 (5,589) -
At 30 June 2018 121,501 18,472 39,171 5,995 185,139
---------- ------------- ---------- ------------- --------
Accumulated depreciation
At 1 January 2018 10,105 5,116 24,992 - 40,213
Charge for the period 827 881 2,623 - 4,331
Disposals - (829) (1,871) - (2,700)
Reversal of impairment - - (14) - (14)
Transfers - 324 (324) - -
At 30 June 2018 10,932 5,492 25,406 - 41,830
---------- ------------- ---------- ------------- --------
Net book value
At 30 June 2018 110,569 12,980 13,765 5,995 143,309
========== ============= ========== ============= ========
At 30 June 2018, the Group had capital commitments totalling
GBP17.6m relating to ongoing construction projects.
Notes to the Condensed Consolidated Financial Statements
13. Property, plant and equipment (continued)
Freehold
and long
leasehold Assets
land and Leasehold Plant and under
buildings improvements equipment construction Total
Restated Restated Restated
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the year ended 31 December
2018 (audited)
Cost
At 1 January 2018 116,994 17,684 38,544 5,123 178,345
Additions at cost 1,687 523 3,410 17,626 23,246
Disposals (205) (1,040) (5,277) - (6,522)
Transfers 5,143 4,873 3,232 (13,248) -
Transfers to assets held
for sale (797) - - - (797)
At 31 December 2018 122,822 22,040 39,909 9,501 194,272
---------- ------------- ---------- ------------- --------
Accumulated depreciation
At 1 January 2018 10,105 5,116 24,992 - 40,213
Charge for the year 1,696 1,802 5,455 - 8,953
Disposals (205) (1,076) (4,900) - (6,181)
Impairment - - 87 - 87
Transfers - 324 (324) - -
At 31 December 2018 11,596 6,166 25,310 - 43,072
---------- ------------- ---------- ------------- --------
Net book value
At 31 December 2018 111,226 15,874 14,599 9,501 151,200
========== ============= ========== ============= ========
At 31 December 2018, the Group had capital commitments totalling
GBP20.8m (2017: GBP7.7m) relating to ongoing construction
projects.
More information about the transfers to assets held for sale and
the impairment are available in the consolidated financial
statements for the year ended 31 December 2018 which are available
at www.mmhplc.com.
Notes to the Condensed Consolidated Financial Statements
14. Fair value measurement
The carrying amounts and fair values of non-current
non-financial assets and financial liabilities are as below. The
fair values are based on cash flows discounted using the prevailing
rates.
Six months ended Six months ended Year ended
30 June 2019 30 June 2018 31 December 2018
(unaudited) (unaudited) (audited)
Carrying Carrying Carrying
amount Fair value amount Fair value amount Fair value
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Non-financial
assets:
Investment properties 2,590 2,590 2,590 2,590 2,590 2,590
Assets held for
sale 797 3,300 - - 797 3,300
Financial liabilities:
Mortgages 5,505 4,282 6,145 4,668 5,665 4,478
All financial assets and liabilities shown in the table above
are Level 2 and there have been no transfers between levels during
2019 or 2018.
Independent review report to Marshall Motor Holdings Plc
Introduction
We have been engaged by the Company to review the condensed
consolidated set of financial statements in the interim financial
report for the six months ended 30 June 2019 which comprises the
condensed consolidated statement of comprehensive income, condensed
consolidated statement of changes in equity, condensed consolidated
statement of financial position, condensed consolidated cash flow
statement and the related notes 1 to 16. We have read the other
information contained in the interim financial report and
considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed
consolidated set of financial statements.
This report is made solely to the Company in accordance with
guidance contained in International Standard on Review Engagements
2410 (UK and Ireland) "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the
Auditing Practices Board. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the
Company, for our work, for this report, or for the conclusions we
have formed.
Directors' Responsibilities
The interim financial report is the responsibility of, and has
been approved by, the directors. The directors are responsible for
preparing the interim financial report in accordance with
International Accounting Standard 34, "Interim Financial
Reporting," as adopted by the European Union.
As disclosed in note 1, the annual financial statements of the
Group are prepared in accordance with IFRSs as adopted by the
European Union. The condensed consolidated set of financial
statements included in this half-yearly financial report have been
prepared in accordance with International Accounting Standard 34,
"Interim Financial Reporting," as adopted by the European
Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on
the condensed consolidated set of financial statements in the
interim financial report based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed consolidated set of
financial statements in the interim financial report for the six
months ended 30 June 2019 is not prepared, in all material
respects, in accordance with International Accounting Standard 34
as adopted by the European Union.
Ernst & Young LLP
Cambridge
12 August 2019
Appendix -- Alternative Performance Measures (APMs)
The Group presents various APMs as the Directors believe that
these are useful for users of the financial statements in helping
to provide a balanced view of, and relevant information on, the
Group's financial performance. The APMs are measures which disclose
the adjusted performance of the Group excluding specific items
which are regarded as non-recurring. See Note 6 'Non-underlying
Items' for full details of the nature of items excluded from
non-underlying performance measures.
The following table shows the reconciliation between the Group's
performance as reported in accordance with International Financial
Reporting Standards (IFRS) and the Group's underlying performance
and like-for-like results.
2019 2018
Continuing operating profit GBP'000 GBP'000
Total continuing operating profit as reported 19,755 21,141
Impact of non-underlying items
Acquisition costs 159 -
Post-retirement benefits finalisation 33 -
Restructuring costs 137 -
Loss on disposal of investment property 71 -
Profit on disposal of assets classified
as held for sale - (268)
------------- -------------
400 (268)
Continuing underlying operating profit 20,155 20,873
============= =============
2019 2018
Continuing revenue GBP'000 GBP'000
Total continuing revenue as reported 1,183,267 1,162,904
Impact of non like-for-like activities
New dealerships acquired or opened in the
year (22,704) -
Dealerships closed in the year (12) (12,941)
------------- -------------
(22,716) (12,941)
Continuing like-for-like revenue 1,160,551 1,149,963
============= =============
2019 2018
Continuing gross profit GBP'000 GBP'000
Total continuing gross profit as reported 135,027 132,953
Impact of non like-for-like activities
New dealerships acquired or opened in the
year (2,548) -
Dealerships closed in the year 26 (1,368)
------------- -------------
(2,522) (1,368)
Continuing like-for-like gross profit 132,505 131,585
============= =============
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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