11 Oct 2018 07:00
11 October 2018
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
Trading Update
Marshall Motor Holdings Plc, one of the UK's leading automotive retail groups, issues the following trading update in response to the introduction of the new Worldwide Harmonised Light Vehicle Test Procedure ("WLTP") on 1 September 2018 and the resultant significant impact on the UK new vehicle market during September 2018.
Current trading and outlook
As previously announced, the Group delivered a robust performance in H1 2018 with continuing underlying profit before tax growth on a previous record result. During H2 2018, the challenges presented by a decline in the new vehicle market continue to have been mitigated by strong operational disciplines and the benefits of the decisive action taken in 2017 to proactively manage costs and the Group's dealership portfolio.
The Board had anticipated a decline in new vehicle registrations in the key plate-change month of September and supply disruption in Q4 and as a result, its previous outlook for the full year remains unchanged.
The Board believes it is right to remain cautious on the UK car market in light of continued economic uncertainty, ongoing consumer confusion around diesel vehicles and the residual impact of WLTP changes on new vehicle supply. With the support of the Group's brand partners, excellent portfolio, robust operating disciplines and strong balance sheet, the Board continues to believe that the Group remains very well positioned for the future.
Investment
The Group continues to invest in selected property assets to support its brand partners and offer customers an excellent retail environment whilst remaining focused on maintaining a strong balance sheet. Ongoing developments of a new Jaguar Land Rover facility on freehold land in Lincoln and a new Ford Store on long leasehold land in Cambridge are scheduled to complete in the new year.
The Group also continues to review potential acquisition opportunities.
Full Year Results
The results for the year ending 31 December 2018 are due to be released on 13 March 2019.
ENDS
For further information and enquiries please contact:
Marshall Motor Holdings plc | c/o Hudson Sandler Tel: +44 (0) 20 7796 4133 |
Daksh Gupta, Group Chief Executive | |
Mark Raban, CFO | |
Investec Bank plc (NOMAD & Broker) | Tel: +44 (0) 20 7597 4000 |
Christopher Baird | |
David Flin | |
David Anderson | |
Hudson Sandler | Tel: +44 (0) 20 7796 4133 |
Nick Lyon 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. The Group's businesses comprise a total of 101 franchises covering 23 brands, operating from 84 locations across 26 counties in England. In addition, the Group operates five trade parts specialists, three used car centres, five standalone body shops and one pre delivery inspection centre.
In April 2018 the Group was recognised by the Great Place to Work Institute, being ranked the 21st best place to work in the UK (large company category). This was the eighth year in succession that the Group has achieved Great Place to Work status.