Marshall Motor profit falls as UK car market goes into reverse

Writer, Stock Market Wire
Tuesday, August 14, 2018 - 08:12

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 profit for the six months through June fell to £17.2m, as revenue fell 2.1% to £1.16bn.

Underlying profit from continuing operations edged up 1.2% to £16.4m after the company closed some poorer-performing dealerships.

Like-for-like new unit sales to retail customers fell 5.9%, while like-for-like used unit sales fell 0.3%. Gross margins were maintained at 11.5%.

The company kept its interim dividend steady at 2.15p per share.

'The board is pleased to announce further profit growth in our continuing retail business in the period against an ongoing background of a challenging UK new car market,' chief executive Daksh Gupta said.

'This has been achieved by a combination of robust operating disciplines, strong management actions on cost control and the benefit of site closures in 2017.'

'With our excellent portfolio, robust operating disciplines, strong balance sheet and the support of our brand partners, I am confident the group remains very well positioned for the future.'

'The board's current outlook for the full year remains unchanged.'

At 8:12am: (LON:MMH) Marshall Motor Holdings PLC share price was -1p at 156p

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