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RNS Number : 1256O
Marshall Motor Holdings PLC
06 October 2021
6 October 2021
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
Trading Update - further increase to FY2021 expectations
Marshall Motor Holdings Plc, one of the UK's leading automotive
retail groups, provides the following trading update and announces
a further increase to its full year expectations for 2021.
In August 2021, the Group announced its expectation that full
year profits for the year ending 31 December 2021 would be not less
than GBP40 million. It also noted the uncertainties for H2 2021 and
beyond surrounding well-documented vehicle supply issues, an
expected realignment of used vehicle values (the timing of which
was uncertain) and the continuing impact of the COVID-19
pandemic.
New vehicle supply constraints caused by the global shortage of
semi-conductors have deteriorated throughout August and the
important plate-change month of September and are expected to
continue through 2022. Whilst consumer demand and order-take has
remained strong, delivery times for new vehicles have been
significantly extended. As a result, on 5 October 2021, the SMMT
reported that new car registrations in September were down 34.4%
from the same period last year, bringing new car registrations for
Q3 2021 down 31.1% compared to growth of 5.9% in the
year-to-date.
Despite a significant number of the Group's key brands being
more impacted by new vehicle supply constraints, pleasingly, the
Group continued its track-record of outperforming the wider new car
market in September. In Q3 2021, the Group's like-for-like new
vehicle unit sales outperformed the wider new vehicle market by
13.0% and have outperformed the wider new vehicle market in the
year-to-date by 11.6%. The Group has benefited from exceptionally
strong new car margins as a result of supply shortages which has
offset the impact of reduced volumes.
The used car market has continued to benefit from previously
reported exceptional market tailwinds as a result of new car supply
shortages and so the impact of any downward price realignment in Q4
2021 is not anticipated to be significant. In Q3 2021, used vehicle
values rose by an average of 12.7%*. This was the seventh month of
consecutive growth in used vehicle values and over this period,
used vehicle values have appreciated by 26.3%*; an unprecedented
position.
The Group has capitalised on these tailwinds, continuing its
investment in used vehicle procurement, pricing utilising
technology and real-time market data, improved online product
presentation and marketing the marshall.co.uk brand through
advertising and sponsorship initiatives. This focus, together with
market tailwinds, resulted in an exceptionally strong margin
performance in used cars in Q3 2021, more than offsetting a decline
in volumes as a consequence of used vehicle supply shortages.
Whilst there remains continued uncertainty over vehicle supply
and the timing of a realignment to more usual market conditions,
given the continuation of favourable market conditions and the
Group's strong operational performance throughout Q3 2021, the
Board now expects that continuing underlying profit before tax for
2021 will be not less than GBP50m. This figure is after the
commitment to repay all CJRS and non-essential retail sector grants
received for this financial year.
ENDS
* average based on 3-year-old, 60,000 mile vehicles
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 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 116
franchises covering 22 brands, across 29 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.
LEI number: 213800BP3HZWHDWXAY78
This announcement contains inside information. The person
responsible for arranging the release of this announcement on
behalf of the Group is Stephen Jones, Group Counsel and Company
Secretary.
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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