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Marshall Motor Holdings Plc

Marshall Motor Holdings PLC Delivers record results and raises dividend

Daksh Gupta, Chief Executive Officer, said

“Despite challenging new and used car markets, the Group performed strongly, exceeding last year’s record result at continuing underlying PBT level with overall like-for-like revenue growth.

In light of the Group’s strong financial position and confidence in its long-term prospects, we are pleased to announce a change to our dividend policy (to 2.5-3.5x, from 4-5x) and a 33.4% increase in our full year dividend to 8.54p per share.

“The Board notes the latest forecast by The Society of Motor Manufacturers and Traders (“SMMT”) for a further decline in the new car market in 2019 and is cognisant of the potential impact that the UK’s withdrawal from the European Union may have. The Board therefore remains cautious about the economic outlook for 2019.  Our order book for the important March plate-change period is, however, encouraging and our outlook for the full year remains unchanged.

“I would like to take this opportunity, on behalf of the Chairman and the Board, to thank our entire team, our brand partners and suppliers for their continued support.”


Marshall Motor Holdings PLC (LON:MMH), one of the UK’s leading automotive retail groups, today announced its results for the year ended 31 December 2018.

Financial summary

Continuing Operations






Var %



Like-for-like* revenue (£m)




Underlying profit before tax** (‘PBT’) (£m)




Basic Underlying Earnings per share (p)





Revenue (£m)




Profit before tax (£m)




Earnings per share (p)




Dividend per share (p)




Net debt (£m)




2018 Highlights

•     Like-for-like revenue growth of 1.2%, despite challenging new and used car markets

•     Gross margin remained strong at 11.7%

•     Record continuing underlying PBT, up 1.2% to £25.7m

•     Like-for-like total new vehicle unit sales down 8.2% due to impact of WLTP and diesel challenges

•     Strong used car performance: like-for-like unit sales up 2.3% and margin up 32bps

•     Further like-for-like aftersales revenue growth, up 2.3%, with overall margin impacted by mix of lower margin parts sales

•     Management initiatives in the year mitigated ongoing cost headwinds

•     Strong balance sheet with an increase in net assets to £200.4m (£2.57 per share) after £9.3m goodwill impairment; underpinned by £125.3m of freehold / long leasehold property and minimal net debt

•     Another year of strong operational cash generation supporting further capital investment of £23.8m

•     Revised dividend policy (2.5-3.5x, from 4-5x) given Group’s strong financial position and confidence in its long-term prospects; 33.4% increase in full year dividend to 8.54p per share


* results on a ‘like-for-like’ basis include only the Group’s businesses that have been active and trading for a period of 12 consecutive months.  Business that are excluded from the definition of ‘like-for-like’ are those sites that have recently commenced operation, therefore do not have a 12-month trading history, as well as any businesses that were closed and market segments or activities that were ceased during the current or previous year.


** underlying profit before tax is presented excluding non-underlying items as set out in Note 4.

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.