Marshalls cautious despite record results

Following a turbulent year for Marshall Motor Holdings’ share price, the UK’s seventh largest dealer group has posted a solid set of financial results for 2016 with growth across the group. In both its underlying figures and its total figures, which include the £107m acquisition of Ridgeway which took place mid-2016, the group saw growth.

Turnover for the year was up 54.1% to £1.9 billion with the like-for-like figure up 10.7%. Underlying profit before tax was up 60.4% to £25.4m (2015: £15.8m), with total PBT at £22.2m, up 44.2% on 2015’s £15.4m figure.

However, commenting on the results chief executive Daksh Gupta said he remained cautious about the new car market in 2017: “Following the UK referendum on EU membership and the resultant continued economic uncertainty, the board remains cautious on the UK vehicle market in 2017. Our order book for the important March plate-change period is, however, encouraging and current trading is in line with our expectations. Our outlook for the full year is unchanged.

“The group has produced another set of record results in the year, further building on our strong historical performance. 2016 was also a strategically important year for the group. The acquisition of Ridgeway, in-line with our growth strategy and funded from existing resources, leaves the group well positioned for further long term growth.”

The underlying operating profit margin of 1.7% for 2016, was up 18 basis points.

MMH also recorded new car revenues up by 54.2% (like-for-like up by 13.1%), used car revenues up by 56.4% (like-for-like up by 8.3%) and aftersales revenues up by 58.4% (like-for-like up by 5.7%).