Marshall Motor Holdings

LN: MMH

Market Cap£216m

Last Close 276p

Marshall Motor is the sixth largest UK motor retailer, operating 164 franchises across 27 brands. It is one of six UK dealership groups that represent each of the top five volume and premium brands and has a strong presence in eastern and southern England.

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Investment summary

Marshall Motor Holdings (MMH) has announced a significant further strategic expansion through the acquisition of privately owned Motorline Holdings for a cash consideration of £64.5m. Adding another top 20 UK dealership group with 48 franchises strengthens brand and geographic coverage and adds approaching £700m of revenues, further increasing MMH’s top tier credentials. The deal should be EPS enhancing and value creating in FY22 despite the current market challenges, underlining why the current FY22e P/E rating appears undemanding. With a resumption of growth in normalised markets anticipated in FY23, MMH retains a strong financial position even after the deal to continue investing for growth.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2019A 2276.1 52.0 22.1 22.6 12.2 5.0
2020A 2154.4 53.4 20.9 20.6 13.4 2.5
2021E 2482.4 82.3 50.2 49.5 5.6 2.3
2022E 2941.5 63.0 25.0 24.6 11.2 5.0
Industry outlook

Market dynamics favour larger motor dealership groups against smaller independent groups, which still command c 60% of the franchise market. The large rating discount to the General Retailers Index is generally a reflection of concerns about economic recession. Shocks like the current COVID-19 pandemic are more challenging, but may throw up opportunities in the future.

Last updated on 20/10/2021
Content on Marshall Motor Holdings
Marshall Motor Holdings – Large-scale strategic expansion
Industrials | Update | 15 October 2021
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Share price graph
Balance sheet
Forecast net cash (£m) 10
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 20.5 34.0 116.5
Relative* 16.7 27.9 74.3
52-week high/low 276.0p/125.0p
*% relative to local index
Key management
Daksh Gupta CEO
Richard Blumberger CFO