Marshall Motor Holdings

LN: MMH

£133m market cap

170p 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 and has a strong presence in eastern and southern England.

Investment summary

Marshall Motor Holdings has grown to rank seventh among UK automotive retailers. Strong brand coverage, excellent relationships with major car brands and a strong balance sheet support continued strategic development. As indicated trading in Q420 was stronger than management expected despite the national lockdown in November. Adjusted FY20 PBT of £20.9m, was c 10% better than most recent guidance, aided by some positive one-off tailwinds as well as partner and government support. Cash performance also remained strong with adjusted year end net cash of £28.8m. Challenges remain for 2021 (Brexit/COVID-19 etc), and we assume a relatively flat year overall.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2019A 2276.1 52.0 22.1 22.9 7.4 3.0
2020A 2154.4 53.4 20.9 21.1 8.1 1.5
2021E 2266.0 50.1 19.3 19.3 8.8 6.5
2022E 2346.3 52.5 21.2 21.3 8.0 3.8
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 05/05/2021
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Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (1.7) 18.9 73.5
Relative* (4.4) 11.4 39.4
52-week high/low 177.5p/98.0p
*% relative to local index
Key management
Daksh Gupta CEO
Richard Blumberger CFO

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