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Marshall Motor Holdings (MMH)

Business description

Marshall Motor is the seventh largest UK motor retailer, operating 100 franchises spread across 23 brands at 83 locations. It is one of six UK dealership groups that represent each of the top five volume and premium brands. It has a strong presence in eastern and southern England.

Stock data

Market cap.£126.5m
Last close162.50p
High / Low (52 weeks)175.5p / 122.5p
Stock market listingLN
Forecast net debt (£m)3.5
Forecast gearing ratio (%)2
SectorAutomotive Retailers

Price performance

Relative *

* % 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 6.2 1.3
2017A 2268.9 46.4 29.1 30.8 5.3 2.1
2018E 2207.8 41.6 25.7 26.3 6.2 3.3
2019E 2267.3 41.1 24.8 25.4 6.4 3.5

Last updated on 29/01/2019

Investment summary

MMH has established a strong track record as it has transformed and grown to rank seventh among UK automotive retailing groups. The strong brand coverage, excellent relationships with major manufacturers and a healthy balance sheet should continue to support strategic development, with a new chairman and CFO also in place. Despite a volatile Q318 for UK new car registrations, management raised its outlook for FY18 due to strong used car performance. FY19 remains challenging with modest market declines likely and cost pressures persisting.

Last updated on 01/02/2019

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 01/02/2019

Key management

Daksh Gupta, CEO
Mark Leeder, Head of Commercial Finance

Company address

Airport House
The Airport, Newmarket Road, Cambridge
United Kingdom
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