# Marshall Motor Holdings plc Strong Outperformance of Market; Outlook in line

- Link: https://www.directorstalkinterviews.com/marshall-motor-holdings-plc-strong-outperformance-of-market-outlook-in-line/412787567
- Published: 2019-07-11T07:16:16+01:00
- Author: Giles Arbor

**Marshall Motor Holdings plc** ([LON: MMH](https://www.directorstalkinterviews.com/company/marshall-motor-holdings/mmh.l)),
one of the UK’s leading automotive retail groups, issued today its pre-close trading
statement ahead of the release on 13 August 2019 of its half year results for the
six months ended 30 June 2019.

**H1 Performance**

The UK new and used car markets remain challenging with volume pressures and well
documented cost headwinds for the retail sector, together with recent margin pressure
in the used car market. During the Period, the Group outperformed the market in 
both retail and fleet new vehicle unit sales, continued strong growth in used vehicle
unit sales and achieved further growth in aftersales revenues. This helped mitigate
the impact of the challenging market conditions and the Group expects to deliver
an H1 underlying profit before tax in line with the Board’s expectations.

**Financial Position**

The Group delivered strong cash generation during the Period and expects to report
a positive net cash position of approximately £5m at 30 June 2019 (31 December 2018:
net debt of £5.1m).

This was achieved notwithstanding the previously reported £6.0m paid to complete
the process of eliminating all outstanding historic defined benefit pension liabilities,
the £3.5m investment made in the acquisition of six ŠKODA dealerships, the subsequent
£1.7m paid to acquire the freehold property at Northampton ŠKODA and £1.7m of incremental
dividend payments compared to the prior year following the change to the Group’s
dividend policy.

The Group continues to manage working capital robustly and work with its Brand partners
to control capital expenditure.

**Summary and Outlook**

Despite challenging market conditions, the Group has delivered a strong H1 unit 
sales performance, ahead of both the new and used car markets and underlying profit
before tax in line with the Board’s expectations.

Given continued weak consumer confidence as a result of ongoing political uncertainty
over Brexit, ongoing cost headwinds for the retail sector and further potential 
new vehicle supply constraints in the lead up to the implementation of further emissions-
related regulations on 1 September 2019, the Board believes it is right to remain
cautious regarding the outlook for the remainder of the year. Nevertheless, the 
Board’s current outlook for the full year remains unchanged.

**Interim Results**

Marshall Motor Holdings plc will announce its interim results for the six months
ended 30 June 2019 on 13 August 2019.

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