Marshall Motor Holdings (MMH)

Business description

Marshall Motor is the seventh largest UK motor retailer, operating 103 franchises spread across 24 brands at 89 locations. It is one of six UK dealership groups that represent each of the top five volume and premium brands. The group has a strong presence in eastern and southern England.

Stock data

Market cap.£110.7m
Last close143.00p
High / Low (52 weeks)178.5p / 133.5p
Stock market listingLN
Forecast net debt (£m)121.2
Forecast gearing ratio (%)75
SectorAutomotive Retailers

Price performance

Relative *(4)(17.7)(27.6)

* % Relative to local index

Other companies in sector Show

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2015A 1232.8 22.8 15.8 15.8 9.1 2.9
2016A 1899.4 38.6 25.4 26.2 5.5 1.1
2017E 2263.1 43.9 26.5 26.8 5.3 1.7
2018E 2289.5 44.2 27.2 27.5 5.2 1.5

Last updated on 31/05/2017

Latest research

Investment summary

Since its listing on AIM in 2014, MMH can reflect positively on its continued transformation and strong growth record, which has driven it to rank seventh among UK automotive retailing groups. The strong brand coverage and excellent relationships with major manufacturers should continue to deliver growth opportunities, despite potentially tougher market conditions. Our fair value for MMH currently stands at 214p per share.

Last updated on 01/06/2017

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 stockmarket confidence is undermined by the inflationary impact of weak sterling on new car prices and interest rates. Large rating discounts relative to the FTSE All-Share General Retailers Index fail to recognise the defensive qualities across a sector where used vehicle and aftersales activities account for the majority of profits.

Last updated on 01/06/2017

Key management

Daksh Gupta, CEO
Chris Baird , Corporate Finance/IR
Mark Leeder, Head of Commercial Finance

Company address

Airport House
The Airport, Newmarket Road, Cambridge
United Kingdom
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