Marshall Motor Holdings outperforms UK market
In turbulent times for the UK motor industry, Cambridge’s own Marshall Motor Holdings has strongly outperformed the market and even nudged its share price north in the process.
Its first half result to June 30 is in line with the board’s expectations following a strong financial performance in a challenging market. Like-for-like new unit sales to retail customers was down 0.4 per cent compared to a market decline of 3.2 per cent but after-sales revenue was up 1.8 per cent.
The company has adjusted net cash of £5.8 million – up from £0.9m year-on-year, reflecting disciplined working capital management and working with brand partners to control capex.
The balance sheet continues to be strong with net assets of £200.7m – up from £195.1m last time. The interim dividend of 2.85p per share is up 32.6 per cent.
CEO Daksh Gupta 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 September 1, 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.”