MARSHALL Motor Holdings hailed a ‘robust financial performance’ as it published its financial results for the first half of 2018 today.
Continuing underlying profit before tax stood at a record high of £16.4 million, up 1.2 per cent on the figure for the first half of 2017 which stood at £16.2 million.
Reported profit before tax was also up. A 6.5 per cent increase over the figure for the first half of 2017 took 2018’s figure to £17.2 million.
The dealer group’s reported profit for total operations before tax fell from £18.6 million in the first half of 2017 to £17.2 million in the same period this year.
Revenue from total operations also took a hit, although not by as much. The sum fell by 2.1 per cent year-on-year, from £1,187 million in the first half of 2017 to £1,162 million from January to June this year.
Like-for-like new unit sales to retail customers were down 5.9 per cent and like-for-like used unit sales down 0.3 per cent.
Like-for-like used revenues were up 5.2 per cent with strong margin improvement. Like-for-like aftersales revenue was up 3.2 per cent. Continuing gross margin was maintained at 11.5 per cent.
Net operating expenses were lower than in 2017, despite significant ‘cost headwinds’. Management is said to have acted strongly on discretionary costs and site closures.
Net assets on June 30, 2018 were £201.2 million (£2.58 per share) compared with £158 million and £2.04 per share on June 30, 2017.
A strong balance sheet was underpinned by £121.1 million of freehold and long leasehold property, with a £120 million revolving credit facility extended until June 2021.
The group continued to invest in property, with £10 million of capital expenditure during the first half of 2018.
Interim dividend was maintained at 2.15p per share.
Daksh Gupta, pictured, CEO of Marshall Motor Holdings, commented: ‘The board is pleased to announce further profit growth in our continuing retail business, against an ongoing background of a challenging UK new car market.
‘This has been achieved by a combination of robust operating disciplines, strong management actions on cost control and the benefit of site closures in 2017.
‘With our excellent portfolio, robust operating disciplines, strong balance sheet and the support of our brand partners, I am confident the group remains very well positioned for the future. The board’s current outlook for the full year remains unchanged.’