Marshall’s 2017 financial performance better than expected

Marshall’s 2017 financial performance better than expected

MARSHALL Motor Holdings, one of the UK’s leading automotive retail groups, performed strongly during 2017 – even as the new vehicle market in the UK became more challenging.

The news was revealed in a statement the company issued ahead of the release on March 14 of its full-year results for the year ended December 31, 2017.

In the second half of 2017, the group continued to build on the record financial performance it enjoyed during the first six months – with its performance during the whole year expected to be ahead of expectations – which had already been upgraded.

In the first half, the group did record a 0.4 per cent decline in like-for-like new car sales to retail customers. But this meant the company outperformed the market overall, since total UK new vehicle registrations fell by 4.8 per cent during the same period.

In the second six months of the year, total new vehicle registrations to retail customers across the UK decreased by 9.2 per cent – and again, the group maintained its outperformance of the market thanks, it says, to its brand portfolio, locations and people.

Balance sheet

Used cars were another area where Marshall had a strong year. From January to June, the group reported a 5.8 per cent increase in like-for-like used unit sales, with the strong performance continuing into the rest of the year. Aftersales revenues remained stable with like-for-like revenue growth from July to December broadly consistent with the 2.3 growth reported in the first half of 2017.

Meanwhile, decisions taken by Marshall management significantly strengthened the group’s balance sheet. At the end of June, the group had total net debts of £101.1 million. Following the disposal of Marshall Leasing Ltd (MLL), this has been effectively eliminated. Together with its committed £120 million revolving credit facility, the group remains in a very strong financial position and well-placed to exploit future growth opportunities.

CEO Daksh Gupta, pictured, said: ‘I am delighted to report that the financial performance of the group during 2017 is expected to be ahead of our previously upgraded expectations, despite the market backdrop.

‘Following the disposal of MLL we are now focused exclusively on our motor retail business and our balance sheet has been further enhanced. We therefore approach 2018 from a position of increased financial strength and with the ongoing support of our brand partners.’

Marshall’s 99 dealerships represent 23 leading manufacturers, including Audi, BMW, Ford, Mercedes-Benz and Volvo.

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