Marshall Motor Holdings PLC Trading Update and 2020 Outlook (9913H)
December 09 2020 - 2:00AM
UK Regulatory
TIDMMMH
RNS Number : 9913H
Marshall Motor Holdings PLC
09 December 2020
9 December 2020
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
Trading Update and 2020 Outlook
Marshall Motor Holdings plc, one of the UK's leading automotive
retail groups, issues the following update on recent trading and
announces that it is now anticipating an underlying profit before
tax for the year ending 31 December 2020 ("Year") of not less than
GBP19m (previously GBP15m).
On 13 October 2020, the Group announced that as a result of a
particularly strong trading performance in the important September
plate-change month, it was targeting an underlying profit before
tax performance for the Year of GBP15m. It also noted that this
guidance had been given in an environment where there were
significant ongoing economic and social uncertainties and so the
risks to the Board's guidance were much higher than in a normal
year.
The Group continued to trade strongly for the remainder of
October, benefitting from previously reported sector tailwinds. New
retail unit sales were up on a like-for-like basis and
significantly outperformed SMMT*-reported new retail market
registrations, with like-for-like used car unit volumes also
performing strongly.
Whilst trading was negatively impacted by the closure of its
showrooms throughout November, the Group was able to continue to
operate all of its aftersales businesses, take orders online and by
telephone and deliver new and used vehicles through 'click and
collect' services. The Group's strong outperformance of the wider
new car market continued.
The Group's outperformance of the new retail car market for
October and November combined was 9.8% on a like-for-like unit
sales basis. During the same period, like-for-like used vehicle
unit sales were down 12.7% with like-for-like aftersales revenues
down just 3.8% compared to the same period in 2019.
Since the reopening of its showrooms on 2 December, the Group
has continued to trade well and as result, the Group is now
anticipating underlying profit before tax for the Year of not less
than GBP19m.
The Group's adjusted net cash position (excluding IFRS16) at 30
November was GBP29.8m.
The Group remains grateful for the various support measures
provided by the Government which have enabled the Group to protect
the overwhelming majority of jobs within the Group which might
otherwise have been at risk. During this unprecedented period, the
Group continued to provide vital aftersales services to support
emergency services, commercial vehicle operators and key workers;
these services were loss-making during the first national lockdown.
In addition, the Group enhanced furloughed colleagues' pay,
implemented voluntary reductions in pay and fees by the Board,
operational directors and other senior managers and as previously
announced, voluntarily repaid all amounts from which it benefitted
under the Government's VAT Payment Deferral Scheme (GBP10.9m) 18
months early. It is the Group's current intention not to utilise
the Coronavirus Jobs Retention Scheme in 2021.
There continues to remain significant social and economic
uncertainties as a result of both COVID-19 and the potential impact
of the UK's departure from the European Union on 31 December 2020.
Whilst the Board is pleased with the Group's response to the
significant challenges presented by COVID-19 in 2020, demonstrating
the strength and resilience of the Group's business, it has also
benefited from a number of well-documented sector tailwinds in 2020
and therefore remains cautious over the trading environment for
2021.
*Society of Motor Manufacturers and Traders
ENDS
For further information and enquiries please contact:
Marshall Motor Holdings plc c/o Hudson Sandler
Daksh Gupta, Chief Executive Officer Tel: +44 (0) 20 7796
4133
Richard Blumberger, Chief Financial
Officer
Investec Bank plc (Financial Adviser, Tel: +44 (0) 20 7597
NOMAD & Broker) 5970
Christopher Baird
David Flin
David Anderson
Hudson Sandler Tel: +44 (0) 20 7796
4133
Nick Lyon
Bertie Berger
Nick Moore
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. The Group's businesses comprise a total of 113
franchises covering 22 brands, across 28 counties in England. In
addition, the Group operates six trade parts specialists, two used
car centres, six standalone body shops and one pre delivery
inspection centre.
In May 2020 the Group was recognised by the Great Place to Work
Institute, being ranked for a sixth year running with a position of
the 12th best place to work in the UK (super large company
category). This was the eleventh year in succession that the Group
has achieved Great Place to Work status. In November 2020 the Group
was awarded 'Employer of the Year' by Motor Trader magazine.
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.
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END
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