# Marshall Motor Holdings PLC Q&A with Zeus Capital’s Head of Research Mike Allen (LON:MMH)

- Link: https://www.directorstalkinterviews.com/marshall-motor-holdings-plc-qa-zeus-capitals-head-research-mike-allen-lonmmh-3/412733998
- Published: 2017-08-23T08:40:21+01:00
- Author: Amilia Stone

**Marshall Motor Holdings PLC** ([LON:MMH](https://www.directorstalkinterviews.com/company/marshall-motor-holdings/mmh.l))
is the topic of conversation when Zeus Capital’s Head of Research Mike Allen caught
up with DirectorsTalk for an exclusive interview

 

**Q1: Now Mike, Marshall Motor Holdings delivered their interim results today, what
are your thoughts on the results?**

**A1**: The results were in line with our expectations, they were very frank during
the trading statement last month and so headline metrics, they delivered PBT of 
over 30% growth year-on-year, the transformational acquisition of Ridgeway was a
key driver to that but the underlying business continued to perform well in what
remains a difficult market during Q2 of the year.

 

**Q2: What were the key themes in the results?**

**A2**: I think in terms of the key themes, the new car market had got a little 
bit more difficult but like-for-likes in the business remain fairly robust in the
context of industry themes. Used cars, we did see a little bit of margin pressure
but good volume growth and the aftersales business continued to progress well too.
The leasing business did go backwards on what was an exceptional period last year
but, again, delivered a satisfactory profitable outcome.

 

**Q3: Being a solid set of results, has this affected your forecast in any way?**

**A3**: No, we’d actually upgraded our forecast last month on the basis of a better
than expected run-rate in the Ridgeway business rather than the underlying business
and we’re not changing our forecast assumptions for the year on the results today.

 

**Q4: What are your thoughts on the stock value at the moment for Marshall Motor
Holdings?**

**A4**: I think the entire sector is quite cheap at the moment and I think clearly
people are looking at the earnings risk at the moment but if you look at the multiples,
Marshall’s in particular is traded on a forward PE of 5 times which we think is 
certainly at a discount ??? what remains very undervalued. The dividend yield is
5% as well and if you look at the property assets of the business, that’s significantly
underpinned the current market capitalisation of the business. So, I think on a 
number of metrics, the valuation looks compelling at the moment, as does the rest
of the sector.

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