12 Jan 2017 07:00
12 January 2017
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
Pre-close Statement and Notice of Results
'2016 Performance Comfortably In Line With Expectations'
Marshall Motor Holdings plc, one of the UK's leading automotive retail and leasing groups, issues its pre-close statement ahead of the release on 15 March 2017 of its full year results for the year ended 31 December 2016 ("FY16").
The Group continued to build on the record financial performance reported during the first half of FY16 ("H1"), delivering further material improvements during the second half of FY16 ("H2"). This was driven by continued strong like-for-like revenue growth and contributions from recent acquisitions including SG Smith Holdings Limited ("SGS"), acquired on 16 November 2015, and Ridgeway Garages (Newbury) Limited ("Ridgeway"), acquired on 25 May 2016.
The financial performance of the Group during FY16 is anticipated to be comfortably in line with our expectations.
Retail Segment
During FY16, the Group's retail segment showed strong growth in both revenue and profitability, including contributions from both SGS and Ridgeway. The like-for-like growth in sales of new vehicle units reported in H1 strengthened in H2, although margins remained under pressure. Like-for-like sales of used vehicle units during FY16 were marginally above the comparable period last year.
Strong like-for-like growth in after-sales revenues and margins continued throughout FY16.
Leasing Segment
The Group's leasing segment performed well and in line with our expectations during FY16. The leasing fleet continued to show growth and, at 6192 units at the end of FY16, was 2.7% ahead of the position reported at 31 December 2015. The used car market remained robust in FY16 and the segment has continued to benefit from good levels of disposal profitability.
Unallocated Segment and exceptional items
Unallocated central costs during the Period were materially in line with expectations.
As highlighted at the time of the Ridgeway acquisition, in addition to the £1.9m of exceptional costs incurred in H1, during H2 the Group incurred further exceptional costs, in line with expectations, relating to the ongoing integration and reorganisation of the business.
Financial position
The Group's year end net debt position was in line with our expectations. The Group's balance sheet remains strong, underpinned by over £100m of freehold/long leasehold property.
Acquisitions
The strategic acquisition of Ridgeway extended the Group's footprint into new and attractive geographical territories and has greatly increased the Group's scale with key brand partners. The integration of Ridgeway remains ongoing and to plan.
Outlook
Following the UK referendum on EU membership and the resultant continued economic uncertainty, the Board remains cautious on the UK vehicle market in 2017 and concurs with current industry forecasts for a decline in the UK market for new vehicle sales.
Nevertheless, as a result of the strategic acquisitions of SGS and Ridgeway, the Group remains well positioned and continues to seek to drive further growth in its profitability and return on capital, supported by a balanced portfolio of brands, attractive geographic locations and excellent brand partner relationships.
Full Year Results
The Group will publish its full year results for the twelve months ended 31 December 2016 on 15 March 2017.
This announcement contains inside information.
Ends
For further information and enquiries please contact:
Marshall Motor Holdings plc | c/o Hudson Sandler |
Daksh Gupta, Group Chief Executive | Tel: +44 (0) 20 7796 4133 |
Mark Raban, Chief Financial Officer
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Investec Bank plc (Financial Adviser, NOMAD & Broker) | Tel: +44 (0) 20 7597 4000 |
Christopher Baird |
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David Flin |
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David Anderson
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Hudson Sandler | Tel: +44 (0) 20 7796 4133 |
Nick Lyon Alex Brennan |
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Bertie Berger |
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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 through Marshall Motor Group and the leasing of vehicles through Marshall Leasing. Following the acquisition of Ridgeway Garages (Newbury) Limited announced on 26 May 2016, the Group's businesses have a total of 103 franchises covering 24 brands, operating from 89 sites across 25 counties in England. In addition, the Group operates five trade parts specialists, five used car centres, five standalone body shops and one PDI centre.
In May 2016 the Group was recognised by the Great Place to Work Institute, being ranked the 19th best place to work in the UK (large company category). In November 2016 Marshall Leasing was named Fleet Service Company of the Year 2016 by the Association of Car Feet Operators (ACFO), an award it also won in 2010 and 2013.
Cautionary statement
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 and undue reliance should not be placed on any such statements because they speak only as at the date of this document and 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. MMH 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.