Marshall Motor Group has announced it is predicting a ‘significant increase’ in its 2021 full-year expectations.
Updating the London Stock Exchange this morning (Aug 4), the dealer group said the rest of the year is uncertain but concluded there could be ‘a range of possible outcomes’.
However, Marshall said it’s clear it expects to see profit before tax to be ‘no less than’ £40m.
Importantly, that figure is after the dealer group has repaid all furlough grants and non-essential retail sector grants it received during the current financial year.
In June, Marshall posted an unscheduled stock market announcement saying that ‘positive tailwinds’ were helping it to potentially record an ‘exceptionally strong’ first half of the year.
That update even went as far as to say its numbers for H1 2021 are likely to be ‘well ahead of the group’s historic record result’, too.
It said that expectation was made off the back of ‘unprecedented used vehicle value appreciation and favourable demand-to-supply conditions for both new and used vehicles’.
In today’s update, Marshall said: ‘Those tailwinds continued in July and the group now has initial visibility on the outlook for August and September.’
It went on to say: ‘There remains a high level of uncertainty over the second half of 2021 and into 2022 given well-documented vehicle supply issues, an expected realignment of used vehicle values (the timing of which is uncertain) and the continuing impact of the Covid-19 pandemic.
‘Given these uncertainties, there remains a range of possible outcomes for the year, however, the board now expects that continuing underlying profit before tax for 2021 will be not less than £40.0m.
‘This figure is after the commitment to repay all CJRS and non-essential retail sector grants received for this financial year.’
Marshall will announce its interim results for the first six months to June 30, 2021 on August 10.