Marshall Motor Holdings (MMH)

Business description

Marshall Motor is the seventh largest UK motor retailer, operating 101 franchises across 23 brands at 86 locations. With a strong presence in the east and south, it is one of six UK dealership groups to represent the top five volume and premium brands.

Stock data

Market cap.£128.5m
Last close165.00p
High / Low (52 weeks)178.5p / 134.5p
Stock market listingLN
Forecast net debt (£m)6.1
Forecast gearing ratio (%)3
SectorAutomotive Retailers

Price performance

Relative *(7.5)6.6(7.4)

* % Relative to local index

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Company news

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 1899.4 38.4 25.4 26.2 6.3 1.3
2017A 2268.9 46.4 29.1 30.8 5.4 2.1
2018E 2283.9 38.8 23.5 24.1 6.8 3.6
2019E 2334.4 39.2 24.0 24.6 6.7 3.7

Last updated on 21/03/2018

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. MMH delivered FY17 results that exceeded our earnings estimates despite the challenges of softer UK car markets that are persisting into FY18. The dilutive disposal of the leasing activity leaves MMH effectively ungeared and in a strong position to pursue its growth strategy.

Last updated on 06/04/2018

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 06/04/2018

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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