Last close As at 05/08/2026
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Market capitalisation
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Research: Industrials
The company has release its pre-close update for H118, which indicates modest progress has been made against last year’s record period: a commendable performance in still-challenging UK car markets. Despite remaining relatively cautious about the H218 market prospects, management expects the full-year outturn to be at the top end of its expectations. The departure of Mark Raban, the chief financial officer during the flotation, to explore new opportunities would appear to be a personal choice. We expect an orderly transition and do not feel there are any reasons for concern at the decision.
Written by
Marshall Motor Holdings |
Progression in still challenging markets |
Pre-close H1 update/ directorate change |
Automotive retailers |
3 July 2018 |
Share price performance
Business description
Analysts
Marshall Motor Holdings is a research client of Edison Investment Research Limited |
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The company has release its pre-close update for H118, which indicates modest progress has been made against last year’s record period: a commendable performance in still-challenging UK car markets. Despite remaining relatively cautious about the H218 market prospects, management expects the full-year outturn to be at the top end of its expectations. The departure of Mark Raban, the chief financial officer during the flotation, to explore new opportunities would appear to be a personal choice. We expect an orderly transition and do not feel there are any reasons for concern at the decision.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/16 |
1,899.4 |
25.4 |
26.2 |
5.5 |
6.4 |
3.3 |
12/17 |
2268.9 |
29.1 |
30.8 |
6.4 |
5.4 |
3.8 |
12/18e |
2283.9 |
23.5 |
24.1 |
6.9 |
6.9 |
4.1 |
12/19e |
2334.4 |
24.0 |
24.6 |
7.1 |
6.8 |
4.3 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, share-based payments
The company indicates that H118 underlying profit before tax will be marginally ahead of last year allowing for the discontinued leasing operations that contributed £2.4m in H117. The positive outcome implies upside potential in FY18, but concerns over supply-side disruption in H2 temper optimism. The potential exists for this disruption to affect new vehicle sales volumes as producers implement the new Worldwide Harmonised Light Vehicle Testing Procedures from September, coincident with the second busiest registration month for UK new vehicles. In the five months to May, Marshall Motor Holdings’ new retail sales are in line with the market drop for the period of 5.8%. New fleet sales are ahead of the 7.8% market decline when adjusted for the decision taken last year to exit some low-margin fleet sales. Used car sales in H118 are flat year-on-year but profit has improved. Aftersales revenues are up, although an increased proportion of lower-margin parts sales to service activity has left profits flatter. The company expects a small net debt position at 30 June 2018, against £2.2m at the start of the year. The £120m revolving credit facility has been extended by 12 months to 3 June 2021, enabling Marshall Motor Holdings to pursue appropriate M&A opportunities as and when they arise. The company will report interim results on 14 August 2018.
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Disclaimer
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Disclaimer
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Medicure has US rights to Aggrastat (tirofiban hydrochloride), an intravenously administered anti-platelet drug that acts as a glycoprotein IIb/IIIa (GPI) inhibitor. With Aggrastat sales having peaked, the firm is focused on expanding its product portfolio, such as through the recent launch of Zypitamag. We also expect it to deploy its cash resources to acquire or in-license new products to bolster its growth profile.