Marshall Motor profit more than doubles, remains 'cautious' on UK car market

Writer, Stock Market Wire
Wednesday, March 14, 2018 - 08:09

Automotive retailer Marshall Motor Holdings said its annual profit more than doubled after it sold its leasing business and grew revenue, despite recording lower like-for-like new and used car unit sales.

Pre-tax profit jumped to £53.1m, up from £22.2m, as revenue increased by 19.5% to £2.27bn.

Underlying pre-tax profit increased by 14.4% as gross profit margin expanded by eight basis points to 11.7%.

The company declared a dividend for the full year of 6.4p per share, up 16.4% on-year.

'Despite the more challenging market backdrop, the board is pleased to announce another record financial performance which was ahead of our previously upgraded expectations,' chief executive Daksh Gupta said.

'During 2017 we took a number steps, including the strategic disposal of Marshall Leasing, to prepare the group for the future.'

'We are now focused exclusively on our motor retail business and with a significantly strengthened balance sheet remain ideally positioned to exploit future opportunities.'

Gupta said the company had noted the latest Society of Motor Manufacturers and Traders UK new car market forecasts for a decline of 5.6% in 2018.

'As a consequence the board therefore remains cautious about the UK car market in 2018 as it returns to a more normalised level.'

'Our trading performance in the current financial year to date is in line with our expectations and our outlook for the full year remains unchanged.'

At 8:09am: (LON:MMH) Marshall Motor Holdings PLC share price was +9.5p at 176.5p


Related content

Marshall Motor hikes dividend 33% amid modest adjusted profit growth

Marshall Motor Holdings booked a rise in annual profit, despite falling sales, after it shut six loss-making dealerships.

Pre-tax profit for the year through December...

Wed, 13/03/2019 - 09:16


Marshall Motor acquisitions for £3.5m make it UK's biggest Skoda retailer

Auto retailer Marshall Motor Holdings said it had completed two acquisitions comprising six Skoda franchised dealerships for a combined £3.5m.

Marshall said it was consequently...

Mon, 04/03/2019 - 09:51


Marshall Motor appoints Richard Parry-Jones as chairman

Auto retailer Marshall Motor Holdings said it had appointed Richard Parry-Jones as its new chairman, effective 1 January.

Parry-Jones had served as chief technology officer...

Tue, 11/12/2018 - 14:15


Marshall Motor sees annual profits rising after better-than-expected October

Car retailer Marshall Motor Holdings said it expected to post annual underlying pre-tax profits ahead of the previous year.

The company said it was issuing...

Wed, 14/11/2018 - 07:46


Marshall Motor profit falls as UK car market goes into reverse

Car dealer Marshall Motor Holdings booked a 7.1% fall in first-half profit as lax demand for new cars in the UK weighed on sales.

Pre-tax...

Tue, 14/08/2018 - 08:12