Marshall Motors roars ahead and sparks ‘Buy’ call from Investec
Leading UK financier Investec posted a bullish ‘Buy’ note after Cambridge-based Marshall Motor Holdings revealed that its 2017 performance was ahead of already upgraded expectations.
While the share price was only modestly up, Investec piled on the praise, citing MMH as “sector leading with ongoing growth in used and after sales.”
It added that MMH was “well positioned to continue outperforming with a portfolio increasingly geared towards premium brands that continue to take market share and excellent OEM relationships. It has a robust balance sheet underpinned by asset backing.”
MMH will post its results for the year to December 31 on March 14. In the second half the company continued to build on the record financial performance reported during the first and said it performed well against the background of a more challenging UK new vehicle market.
CEO Daksh Gupta said: “I am delighted to report that the financial performance of the group during 2017 is expected to be ahead of our previously upgraded expectations despite the market backdrop.
“Following the disposal of Marshall Leasing Limited for £42.5 million in September we are now focused exclusively on our motor retail business and our balance sheet has been further enhanced. We therefore approach 2018 from a position of increased financial strength and with the ongoing support of our brand partners.”
He said the group reported a record financial performance during H1 and continued to build on that in H2, thanks to a strong brand mix, attractive geographic territories and excellent brand partner relationships.
• PHOTOGRAPH SHOWS: Daksh Gupta