Marshall Motor Holdings

LN: MMH

£95.8m market cap

122.5p last close

Marshall Motor is the seventh largest UK motor retailer, operating 117 franchises across 24 brands. It is one of six UK dealership groups that represent each of the top five volume and premium brands with a strong presence in eastern and southern England.

Investment summary

Marshall Motor Holdings has grown to rank seventh among the UK automotive retailers. Strong brand coverage, excellent relationships with major car brands and a strong balance sheet continue to support strategic development. Normal events have been overtaken by COVID-19 disruption. All dealerships shut on 24 March and reopened from 1 June. Market declines were initially severe, although MMH appears to be starting from a healthy structural and financial position with the pace of recovery in H220 still uncertain. The focus on protecting jobs and mitigating the cash impact was supported by government, supplier and financier initiatives. H120 results are due on 15 August and management expects an H120 loss before tax.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 2186.9 52.3 24.7 26.3 4.7 2.4
2019A 2276.1 52.0 22.1 22.9 5.3 2.2
2020E N/A N/A N/A N/A N/A N/A
2021E N/A N/A N/A N/A N/A N/A
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 06/08/2020
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 0.0 22.5 (12.5)
Relative* 3.6 17.6 2.2
52-week high/low 158.0p/85.0p
*% relative to local index
Key management
Daksh Gupta CEO
Richard Blumberger CFO
Mark Leeder Head of financial planning & analysis

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