9:37 am, July 3, 2018
NEW car registrations declined by 6.8 per cent at Marshall Motor Holdings in the half year ending June 30, 2018, according to its pre-close trading statement.
The group revealed that a challenging UK market had produced results as expected but that it had produced a positive performance, ahead of its H1 results to be released on August 14.
Registrations of new retail and fleet vehicles declined by 5.7 per cent and 7.8 per cent respectively.
In its statement Marshall explained that the further decline in fleet was in part due to its disposal of low margin fleet business. On November 24, 2017, it announced the completion of its strategic disposal of Marshall Leasing, which contributed £2.4m of underlying profit before tax to the overall business in H1 2017.
It also reported that like-for-like sales of used cars were consistent in H1 with the same period last year thanks to a disciplined used car stocking policy, which allowed for an improvement in used vehicle profitability. Aftersales saw further growth during this period.
Marshalls said that its balance sheet is strong, underpinned by a freehold/long leasehold property portfolio of around £120m.
CEO Daksh Gupta said: ‘The group has delivered a positive performance to date against an ongoing background of a challenging UK new car market. We remain cautious but given our performance to date, our expected outlook for the full year is improved.
‘With the support of our brand partners, excellent portfolio, robust operating disciplines and strong balance sheet, I am confident the Group remains very well positioned for the future.’
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