Pre-close statement and Notice of Results

11 July 2019

MARSHALL MOTOR HOLDINGS PLC

("MMH" or the "Group")

Strong Outperformance of Market; Outlook in line

Marshall Motor Holdings plc, one of the UK's leading automotive retail groups, issues its pre-close trading statement ahead of the release on 13 August 2019 of its half year results for the six months ended 30 June 2019 ("H1" or "Period").

H1 Performance

The UK new and used car markets remain challenging with volume pressures and well documented cost headwinds for the retail sector, together with recent margin pressure in the used car market.  During the Period, the Group outperformed the market in both retail and fleet new vehicle unit sales, continued strong growth in used vehicle unit sales and achieved further growth in aftersales revenues. This helped mitigate the impact of the challenging market conditions and the Group expects to deliver an H1 underlying profit before tax in line with the Board's expectations.

Financial Position

The Group delivered strong cash generation during the Period and expects to report a positive net cash position of approximately £5m at 30 June 2019 (31 December 2018: net debt of £5.1m).  

This was achieved notwithstanding the previously reported £6.0m paid to complete the process of eliminating all outstanding historic defined benefit pension liabilities, the £3.5m investment made in the acquisition of six ŠKODA dealerships, the subsequent £1.7m paid to acquire the freehold property at Northampton ŠKODA and £1.7m of incremental dividend payments compared to the prior year following the change to the Group's dividend policy. 

The Group continues to manage working capital robustly and work with its Brand partners to control capital expenditure.

Summary and Outlook

Despite challenging market conditions, the Group has delivered a strong H1 unit sales performance, ahead of both the new and used car markets and underlying profit before tax in line with the Board's expectations.

Given continued weak consumer confidence as a result of ongoing political uncertainty over Brexit, ongoing cost headwinds for the retail sector and further potential new vehicle supply constraints in the lead up to the implementation of further emissions-related regulations on 1 September 2019, the Board believes it is right to remain cautious regarding the outlook for the remainder of the year.  Nevertheless, the Board's current outlook for the full year remains unchanged.

Interim Results

The Group will announce its interim results for the six months ended 30 June 2019 on 13 August 2019.

ENDS

For further information and enquiries please contact:

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 have a total of 106 franchises covering 23 brands, operating from 84 locations across 27 counties in England. In addition, the Group operates five trade parts specialists, three used car centres, five standalone body shops and one pre delivery inspection centre.

In May 2019 the Group was recognised by the Great Place to Work Institute, being ranked the 11th best place to work in the UK (super large company category). This was the ninth 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.