Marshall Motor Holdings

LN: MMH

£123.2m market cap

157.5p last close

Marshall Motor is the seventh largest UK motor retailer, operating 110 franchises spread across 24 brands. 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

Marshall Motor Holdings (MMH) has a strong track record as it has transformed to rank seventh among the UK automotive retailers. 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. Market declines continue, but the outlook for robust returns has so far been maintained despite the woes of some peers. 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 5.9 2.0
2018A 2186.9 41.4 25.7 27.4 5.7 3.8
2019E 2201.9 51.3 23.2 23.0 6.8 3.3
2020E 2359.8 48.3 19.7 19.5 8.1 3.7
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. 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 17/01/2020
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 2.3 12.1 1.6
Relative* 0.4 4.5 (10.3)
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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