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Marshall Motor Holdings (MMH)

Business description

Marshall Motor is the seventh largest UK motor retailer, operating 101 franchises across 23 brands at 90 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.£103.2m
Last close132.50p
High / Low (52 weeks)175.5p / 132.5p
Stock market listingLN
Forecast net debt (£m)4.8
Forecast gearing ratio (%)2
TeamIndustrials
SectorAutomotive Retailers

Price performance

%1m3m12m
Actual(16.7)(17.7)(18.2)
Relative *(12.9)(10)(12.4)

* % Relative to local index

Other companies in sector Show

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 5.1 1.0
2017A 2268.9 46.4 29.1 30.8 4.3 1.7
2018E 2199.1 40.0 24.2 24.7 5.4 2.8
2019E 2267.3 41.1 24.8 25.4 5.2 2.8

Last updated on 11/10/2018

Investment summary

Following the release of sharply lower UK new vehicle registration statistics for September, MMH has released a trading update reaffirming its outlook for FY18. At the interims the company had been cautious about the potential supply side disruption caused by the new Worldwide Harmonised Light Vehicle Test Procedure (WLTP) from 1 September 2018. As it had already factored this in, the expectations and thus numbers remain unchanged. The share price weakness in response to the registrations decline appears unwarranted, with a strong yield providing support.

Last updated on 11/10/2018

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 market and buyer confidence is undermined by Brexit concerns, negative sentiment on diesel and PCP finance and potential H218 new car supply disruption rates. The large rating discount to the FTSE All-Share General Retailers Index fails to recognise defensive qualities across a sector where used vehicle and aftersales activities account for the majority of profits.

Last updated on 28/09/2018

Key management

Daksh Gupta, CEO
Mark Raban, CFO
Mark Leeder, Head of Commercial Finance

Company address

Airport House
The Airport, Newmarket Road, Cambridge
CB5 8RY
United Kingdom
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