Marshall Motor Holdings PLC Portfolio Update (0288X)
November 21 2017 - 2:02AM
UK Regulatory
TIDMMMH
RNS Number : 0288X
Marshall Motor Holdings PLC
21 November 2017
21 November 2017
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
Portfolio Update
Marshall Motor Holdings plc, one of the UK's leading automotive
retail groups today announces the proposed closure of five
franchised dealerships and one used car centre.
These proposed closures are being effected with the full support
and approval of the Group's brand partners.
Three of the franchised dealerships impacted are in relatively
small markets and within close proximity of other existing Group
dealerships of the same franchise. Where possible, this will enable
the Group to retain its existing customer base. These are Honda
Mountsorrel, Nissan Boston and Vauxhall Welwyn Garden City.
Two of the impacted businesses share a subscale site in Oxford
with a high fixed cost base which is not sustainable in the longer
term. These are the Maserati franchise and one of the Group's used
car centres
The final closure is the Citroen Cambridge new car sales
franchise which is the last remaining representation point with
this particular brand partner. The Group will be retaining Citroen
authorised repairer status in Cambridge.
In the year ending 31 December 2017 these dealerships are
expected to make a combined revenue contribution of approximately
GBP40m and a pre-tax loss of approximately GBP1.3m (before central
overhead charges). Closure costs are expected to be approximately
GBP6m which includes GBP2m of non-cash items including asset and
goodwill impairments. The cash closure costs will in due course be
partly offset by the disposal of a surplus freehold property
(Nissan Boston) and the realisation of working capital / disposal
of stock held in the dealerships.
In the Group's 2017 financial statements these closure costs
will be treated as a non-underlying item.
Daksh Gupta, Chief Executive Officer commented:
"These proposed closures are in line with the Group's stated
strategy of driving class leading returns and will support our 2018
financial aspirations. This decisive action reflects the Board's
focus on tight financial discipline whilst investing in and
supporting our businesses.
Over coming weeks we will be engaging with colleagues in these
businesses and will be seeking to mitigate the impact where
possible."
Ends
For further information and enquiries please contact:
Marshall Motor Holdings plc c/o Hudson Sandler
Daksh Gupta, Group Chief Executive Tel: +44 (0) 20
7796 4133
Mark Raban, Chief Financial
Officer
Investec Bank plc (Financial Tel: +44 (0) 20
Adviser, NOMAD & Broker) 7597 5970
Christopher Baird
David Flin
David Anderson
Hudson Sandler Tel: +44 (0) 20
7796 4133
Nick Lyon
Alex Brennan
Bertie Berger
Notes to Editors
About Marshall Motor Holdings plc (www.mmhplc.com)
The Group's principal activities are the sale and repair of new
and used vehicles through Marshall Motor Group. Prior to the
proposed closures, the Group had a total of 104 franchises covering
24 brands, operating from 90 locations across 26 counties in
England. In addition, the Group operates five trade parts
specialists, five used car centres, five standalone body shops and
one pre delivery inspection centre.
In May 2017 the Group was recognised by the Great Place to Work
Institute, being ranked the 22nd best place to work in the UK
(large company category). This was the eighth year in succession
that the Group has achieved Great Place to Work status.
Cautionary statement
This announcement contains unaudited information based on
management accounts and forward-looking statements that are based
on current expectations or beliefs, as well as assumptions about
future events. These forward-looking statements can be identified
by the fact that they do not relate only to historical or current
facts and undue reliance should not be placed on any such
statements because they speak only as at the date of this document
and are subject to known and unknown risks and uncertainties and
can be affected by other factors that could cause actual results,
and the Group's plans and objectives, to differ materially from
those expressed or implied in the forward-looking statements. MMH
undertakes no obligation to revise or update any forward-looking
statement contained within this announcement, regardless of whether
those statements are affected as a result of new information,
future events or otherwise, save as required by law and
regulations.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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