Marshall Motor Holdings PLC Completion of disposal of Marshall Leasing (4897X)
November 24 2017 - 7:45AM
UK Regulatory
TIDMMMH
RNS Number : 4897X
Marshall Motor Holdings PLC
24 November 2017
24 November 2017
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
Completion of strategic disposal of Marshall Leasing de-gears
the Group's balance sheet
On 21 September 2017 MMH announced the strategic disposal
("Disposal") of the Group's wholly-owned leasing segment, Marshall
Leasing Limited ("MLL" or "Marshall Leasing") to N.I.I.B Group
Limited (which trades as 'Northridge Finance'), a wholly owned
subsidiary of Bank of Ireland (UK) plc for a gross cash
consideration of GBP42.5m.
Completion was subject to regulatory approval from the Financial
Conduct Authority which has now been received and MMH is pleased to
confirm that the transaction has completed today.
As previously announced, the Board believes the Disposal
provides an opportunity to create greater long term value for its
shareholders by allowing MMH to focus on its core motor retail
business. The Group will continue to focus on its successful
strategy of driving both organic growth and increasing UK
geographic footprint through targeted acquisitions with existing
brand partners.
Completion of the Disposal has also further strengthened the
Group's balance sheet, with the net cash proceeds being initially
used to reduce existing levels of indebtedness (actual reported net
debt as at 30 June 2017: GBP101.1m). As a result of the Disposal,
the Group's pro forma balance sheet as at 30 June 2017 would have
been ungeared, with net cash of approximately GBP4.6m and net
assets of 254p per share.
Daksh Gupta, Chief Executive Officer commented:
"The strategic disposal of our leasing business is an important
step for MMH as it has de-geared the Group's balance sheet and
allows us to remain focused on driving our core retail operations.
I am particularly pleased that MMH has an ongoing relationship with
MLL for the supply of new vehicles and we look forward to
supporting the continued growth of MLL under its new ownership"
Ends
For further information and enquiries please contact:
Marshall Motor Holdings plc c/o Hudson Sandler
Daksh Gupta, Chief Executive Tel: +44 (0) 20
Officer 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. Following the
recently announced review of its portfolio and the closure of
certain loss-making businesses, the Group's ongoing businesses have
a total of 99 franchises covering 23 brands, operating from 84
locations across 26 counties in England. In addition, the Group
operates five trade parts specialists, four 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
DISOKQDQBBDDNDB
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November 24, 2017 07:45 ET (12:45 GMT)
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