TIDMMMH
RNS Number : 2154Z
Marshall Motor Holdings PLC
20 May 2021
20 May 2021
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
AGM Trading Statement
Marshall Motor Holdings Plc, one of the UK's leading automotive
retail groups, issues the following trading statement covering the
4 month period ending 30 April 2021 (the "Period") ahead of its
Annual General Meeting to be held at 10:00am today.
Key Highlights:
-- Continued strong market outperformance in the Period.
-- Commitment to repay all Coronavirus Job Retention Scheme
("CJRS") grants received for 2021 (GBP2.6m)
-- Commitment to repay all non-essential retail sector grants received in 2021 (GBP1.4m).
-- Targeting 2021 underlying profit before tax of not less than
2019's result of GBP22.1m (a year unaffected by the pandemic),
after repayment of CJRS and non-essential retail sector grants.
-- Strong cash generation in the Period.
Daksh Gupta, Chief Executive Officer, said:
"Trading during the first fourth months of the year was clearly
impacted by the closure of our physical showrooms during the third
national lockdown. Despite this, we continued to operate
effectively on a 'click and collect' basis as a result of our
investment and focus on our online retailing strategy. We are
pleased to have continued to significantly outperform both the new
retail and used car markets and to deliver a strong financial
result for the Period.
Our trading performance, strong financial position and
commitment to our corporate responsibilities has led to our
decision to repay all CJRS and non-essential retail sector grants
received in this financial year. Given the market tailwinds from
which both the Group and the sector as whole has benefitted, we
believe repayment to be the appropriate and responsible action to
take. We remain extremely grateful for the support provided by the
Government to the retail sector throughout the ongoing pandemic and
we are very proud that we are able to repay this support.
There are a range of possible outcomes for this financial year
given the potential ongoing impact of COVID-19 and well-documented
global semi-conductor supply shortages. However, the business is
currently targeting an underlying profit before tax for 2021 of not
less than 2019's result of GBP22.1m, having fully repaid all CJRS
and non-essential retail sector grants received in this financial
year.
On behalf of the Board, I would like to thank all our colleagues
for their dedication and commitment in what has been a very
challenging period."
Current Trading
As anticipated at the time of publication of our 2020 annual
results on 9 March 2021, trading in the first four months of the
financial year to 30 April 2021 (the "Period") was dominated by the
impact of COVID-19 and the requirement to close our physical retail
businesses from 5 January 2021 until 12 April 2021.
Despite the challenges presented by this significant
interruption to normal business operations, the development and
investment made in 2020 to ensure we could operate effectively on a
'click and collect' basis, in part, mitigated the impact of the
closure of our physical showrooms to customers.
This investment and focus enabled the Group to continue to trade
strongly during the Period, significantly outperforming both the
new retail and used car markets, together with a strong aftersales
performance. Margins benefited from positive consumer demand for
remote vehicle sales and continued sector tailwinds including
robust used vehicle values and favourable demand-to-supply
conditions for both new and used vehicles.
4 months to 30 April 2021
v 4 months to 30 April Variance
2020 SMMT registrations MMH LFL to SMMT MMH Total
------------------- -------- ---------
New Retail Units 8.4% 19.5% 11.1% 18.2%
New Fleet Units 23.2% 21.8% (1.3%) 20.4%
Total New Units 16.2% 20.4% 4.1% 19.0%
Used Units - 42.0% - 40.5%
Aftersales Revenue - 22.1% - 19.0%
Total Revenue - 33.3% - 32.3%
----------------------------- ------------------- -------- --------- ----------
Latest Used Car Market
Data
(3 months to 31 March 2021
v 3 months to 31 March Variance
2020) SMMT registrations MMH LFL to SMMT MMH Total
----------------------------- ------------------- -------- --------- ----------
Used Units (8.9%) (1.7%) 7.2% (2.8%)
----------------------------- ------------------- -------- --------- ----------
Financial Position
The Group's financial position remains strong, improving further
following positive trading and strong cash generation during the
Period.
As a result, whilst the closure of its physical showrooms for
the majority of the Period required the Group to furlough a
significant number of colleagues, in particular during January and
February, the Board has committed to repay all CJRS and
non-essential retail sector grants received in this financial year.
The expected repayments are approximately GBP4.0m.
Strategic Growth
The Group has a longstanding track record of being one of the
sector's leading consolidators and its strong balance sheet means
it remains well positioned to take advantage of further growth
opportunities as they arise. The Group continues to review a
pipeline of potential acquisition opportunities to deliver
accretive shareholder value growth. However, the Group will only
pursue acquisitive growth where it makes strategic and financial
sense for its shareholders and in conjunction with its brand
partners.
Colleagues
In April, the Group was proud to have once again been ranked in
the UK's Best Workplaces(TM) league tables by the Great Place to
Work Institute for the seventh year in succession. The Group has
achieved Great Place to Work status for 11 years in a row and was
the highest ranking retailer across all sectors and company size
categories. The Board remains extremely grateful for our
colleagues' dedication and commitment in what has been a very
challenging period.
Interim Results and Dividends
The Group will announce its interim results for the six months
ending 30 June 2021 on 10 August 2021.
The Board understands the importance of dividends to
shareholders and it intends to resume the payment of dividends as
soon as possible. It will consider the position next at the time of
the release of its interim results in August 2021.
Outlook
The Board has been encouraged by the Group's performance during
the Period, despite the significant impact of the prolonged period
of closure of our physical retail businesses. We are particularly
pleased to once again report the Group's continued and significant
outperformance of the wider new retail and used car markets during
the Period.
The Board is, however, mindful of possible further impacts of
COVID-19 over the coming months as well as potentially significant
supply challenges for bot and used vehicles as a result of
well-documented global semi-conductor supply shortages.
Given these uncertainties, there are a range of possible
outcomes for financial year ending 31 December 2021. However, the
business is currently targeting an underlying profit before tax for
2021 of not less than 2019's result of GBP22.1m (a year unaffected
by the pandemic), having fully repaid all CJRS and non-essential
retail sector grants received in this financial year.
S
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 113
franchises covering 22 brands, across 28 counties in England. In
addition, the Group operates six trade parts specialists, two used
car centres, six standalone body shops and one pre delivery
inspection centre.
In April 2021 the Group was recognised by the Great Place to
Work Institute, being ranked the 12(th) best place to work in the
UK (super large company category). This was the eleventh year in
succession that the Group has achieved Great Place to Work
status.
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. Forward-looking statements often use words such as
anticipate, target, expect, estimate, intend, plan, goal, believe,
will, may, should, would, could, is confident, or other words of
similar meaning. Undue reliance should not be placed on any such
statements because they speak only as at the date of this document
and, by their very nature, they 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. There are a number of factors which
could cause actual results to differ materially from
those expressed or implied in forward-looking statements. The
Group 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.
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END
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