Marshall Motor Holdings

LN: MMH

£108.3m market cap

138.5p last close

Marshall Motor is the seventh largest UK motor retailer, operating 108 franchises spread across 23 brands at 108 locations. It is one of six UK dealership groups that represent each of the top five volume and premium brands. It has a strong presence in eastern and southern England.

Investment summary

MMH has established a strong track record as it has transformed and grown to rank seventh among UK automotive retailing groups. Strong brand coverage, excellent relationships with major manufacturers and a strong balance sheet continue to support strategic development. FY19 remains challenging not least due to Brexit uncertainty. Modest market declines were confirmed by the H119 results, with robust returns and the outlook maintained. Management displays confidence with ongoing investment in new franchises, and a healthy dividend yield.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 2232.0 42.0 25.4 26.9 5.1 1.8
2018A 2186.9 41.4 25.7 27.4 5.1 3.4
2019E 2201.9 51.3 23.2 23.3 5.9 2.7
2020E 2257.4 51.5 23.8 23.8 5.8 3.1
Industry outlook

Market dynamics favour larger motor dealership groups against smaller independent groups, which still command c 60% of the franchise market. Global manufacturing overcapacity still points to OEM support, although market and buyer confidence is undermined by Brexit concerns and negative sentiment on diesel with ongoing new car supply disruption due to the new WLTP emissions testing regime. The large rating discount to the FTSE All-Share General Retailers Index fails to recognise defensive qualities across a sector where used vehicle and aftersales activities account for the majority of profits.

Last updated on 14/11/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (2.5) (1.8) (11.8)
Relative* (3.6) (4.6) (15.3)
52-week high/low 176.0p/135.0p
*% relative to local index
Key management
Daksh Gupta CEO
Richard Blumberger CFO
Mark Leeder Head of financial planning & analysis

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