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.£116.9m
Last close151.00p
High / Low (52 weeks)178.5p / 133.5p
Stock market listingLN
Forecast net debt (£m)119.4
Forecast gearing ratio (%)73
TeamIndustrials
SectorAutomotive Retailers

Price performance

%1m3m12m
Actual6.3(3.8)(5)
Relative *5.2(2.9)(12.7)

* % 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 9.6 3.0
2016A 1899.4 38.7 25.4 26.2 5.8 1.2
2017E 2271.1 44.8 28.3 28.6 5.3 1.8
2018E 2296.5 44.9 28.9 29.2 5.2 1.5

Last updated on 16/08/2017

Investment summary

As indicated in the pre close trading statement, Marshall Motor Holdings (MMH) made good progress in H117, outperforming a weaker UK new car retail market. While uncertainty remains over the direction of end market demand, management’s growth strategy is facilitated by the strengthened balance sheet. Our forecasts are unchanged and assume ongoing market pressure in the second half of the year, with the rating discount to its peers likely to unwind further on any signs of market resilience during H2.

Last updated on 16/08/2017

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 03/08/2017

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
CB5 8RY
United Kingdom
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