Marshall Motor Group has announced updated expectations for 2021 with profits not expected to fall below £50m.
The Car Dealer Top 100 group has made the announcement despite continuing uncertainty over supply issues and the Covid-19 pandemic.
The firm outperformed the wider new car market in September and throughout Q3 of 2021.
In Q3, the group’s like-for-like new vehicle unit sales exceeded the wider new vehicle market by 13 per cent and have outperformed it in the year-to-date by 11.6 per cent.
The group has benefited from exceptionally strong new car margins as a result of supply shortages which has offset the impact of reduced volumes, bosses say.
Whilst consumer demand and order-take has remained strong, delivery times for new vehicles have been significantly extended, says Marshall.
As a result, the group has seen its used car sales improve along with the rest of the industry.
In Q3 2021, used vehicle values rose by an average of 12.7 per cent.
It was the seventh month of consecutive growth in used vehicle values and over this period, used vehicle values have appreciated by 26.3 per cent.
The group has capitalised on the tailwinds and continued its investment in used vehicle procurement, pricing utilising technology and real-time market data.
It has also spent heavily on improved online product presentation and marketing the its brand through advertising and sponsorship initiatives.
This focus, together with market tailwinds, resulted in an exceptionally strong margin performance in used cars in Q3 2021, more than offsetting a decline in volumes as a consequence of used vehicle supply shortages.
A spokesman for Marshall Motor Group said: ‘Whilst there remains continued uncertainty over vehicle supply and the timing of a realignment to more usual market conditions, given the continuation of favourable market conditions and the group’s strong operational performance throughout Q3 2021, the board now expects that continuing underlying profit before tax for 2021 will be not less than £50m.
‘This figure is after the commitment to repay all CJRS and non-essential retail sector grants received for this financial year.’
Pic: Daksh Gupta, CEO of Marshall