13 Jul 2016 07:00
13 July 2016
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
Trading Update and Notice of Interim Results
'Record First Half Performance'
Marshall Motor Holdings plc, one of the UK's leading automotive retail and leasing groups, issues the following trading update ahead of the release on 16 August 2016 of its interim results for the six months ended 30 June 2016 (the "Period").
In line with the Board's expectations, the Group delivered record results in the Period with significant growth in performance versus the same period last year. This includes contributions from SG Smith Holdings Limited ("SGS"), acquired on 16 November 2015, and Ridgeway Garages (Newbury) Limited ("Ridgeway"), acquired on 25 May 2016.
Retail segment
The Group's retail segment has shown growth in both revenue and profitability, driven by a combination of contributions from acquisitions and like-for-like improvements. The Group has continued to show total and like-for-like growth in new and used volumes and aftersales revenues.
Leasing segment
The Group's fully integrated leasing segment continued to perform well, showing further profitability improvements in performance versus the same period last year. The Leasing fleet has shown steady growth versus both the same period last year and the position reported at 31 December 2015.
Unallocated segment, exceptional items
Unallocated central costs were below the level in the same period last year, which (as previously disclosed) contained a one-off cost relating to the settlement of historic pre IPO long term incentive plan ('LTIP') liabilities, partly offset by additional costs related to our public company status.
As expected, during the Period the Group incurred exceptional costs of approximately £1.9m, relating to three dealership disposals announced on 5 April 2016 and certain transaction costs in relation to the purchase of Ridgeway.
Acquisitions update
The strategic acquisitions of SGS and more recently Ridgeway have extended the Group's geographical reach and strengthened relationships with key brand partners. As previously reported, the integration of SGS was delivered as planned and is now complete. The integration of Ridgeway is also progressing as planned and a further update will be given in our interim results announcement.
Financial Position
Adjusted net debt (excluding leasing loans) as at 30 June 2016 was £33m. The Group exercised its option to extend its £75m committed, unsecured revolving credit facility to £120m as disclosed in the Ridgeway acquisition announcement.
Summary
The Group's record performance in the first half of the year was strong and in line with the Board's expectations.
Following the acquisitions of SGS and Ridgeway, the Group now has a total of 103 franchises covering 24 brands, operating from 89 sites across 25 counties in England. The Group also operates five trade parts specialists, seven used car centres, four standalone body shops and one PDI centre.
It is too early to assess any impact on the UK motor vehicle market of the result of the UK referendum on EU membership. Nevertheless, the Group believes it is well positioned for the future with significant balance sheet capacity, a balanced portfolio of brands which has been significantly strengthened by recent acquisitions and a management team that remains focused on maximising the Group's performance.
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 | |
Investec Bank plc (Financial Adviser, NOMAD & Broker) | Tel: +44 (0) 20 7597 4000 |
Christopher Baird | |
David Flin | |
David Anderson | |
Hudson Sandler | Tel: +44 (0) 20 7796 4133 |
Nick Lyon Alex Brennan | |
Bertie Berger |
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, seven used car centres, four 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).
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.