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Marshall Motor Holdings - Full Year Results

This content has been sourced from: https://www.investegate.co.uk/marshall-motor-hldgs...

MARSHALL MOTOR HOLDINGS PLC

("MMH" or the "Group")

Results for the Year ended 31 December 2019

Strong Market Outperformance and Strategic Growth

Marshall Motor Holdings plc, one of the UK's leading automotive retail groups, announces its results for the Year ended 31 December 2019.

 

Financial summary

Continuing Operations

 

2019

 

2018

(restated)*

Var %

 

Underlying:

 

 

 

Like-for-like** revenue (£m)

  2,209.6

  2,161.5

2.2%

Like-for-like operating profit (£m)

33.1

34.5

(4.1%)

Underlying profit before tax*** ('PBT') (£m)

22.1

24.7

(10.8%)

Basic Underlying Earnings per share (p)

22.9

26.3

(12.9%)

 

 

 

 

Reported:

 

 

 

Revenue (£m)

2,276.1

2,186.9

4.1%

Operating profit (£m)

32.0

34.3

(6.7%)

Profit before tax (£m)

19.6

18.0

8.9%

Earnings per share (p)

19.9

17.2

15.7%

 

 

 

 

Dividend per share (p)

8.54

8.54

-

 

 

 

 

Adjusted Net debt (£m)****

30.6

5.1

 

Reported Net debt (£m)

138.6

92.8

 

2019 Highlights:

Significant strategic growth with 20 new businesses;

Record reported revenue and a fifth year of like-for-like revenue growth since IPO;

Despite market challenges, like-for-like operating profit of £33.1m, down only 4.1% against last year's record result and underlying profit before tax was £22.1m, down 10.8%;

Like-for-like total new vehicle unit sales up 0.3% (market registrations down 2.4%), with both retail and fleet delivering a strong market outperformance;

Like-for-like used car unit sales up 6.1% (market volumes decline 0.1%);

Further growth in aftersales like-for-like revenue, up 3.2%;

Disciplined cost management; like-for-like operating expense increased 1.5% despite cost headwinds;

Strong operational cash generation supporting £46.8m of acquisitions and capital investment;

Recommended final dividend of 5.69p giving a full Year dividend of 8.54p per share (2018: 8.54p);

10th consecutive year of Great Place to Work status and fifth consecutive year ranked in the best UK work places.

Daksh Gupta, Chief Executive Officer, said:

" The Group continued to perform well in 2019 and despite a sustained period of market decline, has grown market share by outperforming in all of its key segments . The Group delivered record total reported revenue and achieved like-for-like revenue growth.  Despite market conditions, the business performed well, with like-for-like operating profit down 4.1% to £33.1m against last year's record result.

"The Group has taken advantage of continued market consolidation, completing a number of strategic acquisitions in 2019, adding 20 new businesses. We are particularly proud to have become Volkswagen Group's largest partner in the UK.

"The Board notes the latest forecast by the Society of Motor Manufacturers and Traders ('SMMT') for a further decline in the UK new car market in 2020 of 2.6%. It is also cognisant of the potential impact that uncertainty over the outcome of future trade agreement negotiations between the UK and the European Union may have on the automotive sector.  Although we have not seen an impact to date, the Board is monitoring the potential impact of COVID-19 and is considering contingency plans in the event it starts to impact our dealerships .  The Board therefore remains cautious but our order book for the important March plate-change period is encouraging and our outlook for the full Year is unchanged.

"The UK motor retail landscape may change over the years and decades ahead. The Group's long standing strategy of partnering with the right brands in the right locations has positioned it well to remain a relevant and important part of that future landscape.

"I would like to take this opportunity, on behalf of the Chairman and the Board, to thank our entire team, our brand partners and suppliers for their continued support."

* The comparative figures have been restated on adoption of IFRS 16 Leases.  Full details of the impact of adoption are included in Note 2.

** results on a 'like-for-like' basis include only the Group's businesses that have been active and trading for a period of 12 consecutive months.  Business that are excluded from the definition of 'like-for-like' are those sites that have recently commenced operation, therefore do not have a 12-month trading history, as well as any businesses that were closed and market segments or activities that were ceased during the current or previous Year.

*** underlying profit before tax is presented excluding non-underlying items as set out in Note 5.

**** adjusted net debt is presented excluding the impact of IFRS16 Leases.