Marshall Motor Holdings PLC Completion of disposal of Marshall Leasing (4897X)

TIDMMMH

RNS Number : 4897X

Marshall Motor Holdings PLC

24 November 2017

24 November 2017

MARSHALL MOTOR HOLDINGS PLC

("MMH" or the "Group")

Completion of strategic disposal of Marshall Leasing de-gears the Group's balance sheet

On 21 September 2017 MMH announced the strategic disposal ("Disposal") of the Group's wholly-owned leasing segment, Marshall Leasing Limited ("MLL" or "Marshall Leasing") to N.I.I.B Group Limited (which trades as 'Northridge Finance'), a wholly owned subsidiary of Bank of Ireland (UK) plc for a gross cash consideration of GBP42.5m.

Completion was subject to regulatory approval from the Financial Conduct Authority which has now been received and MMH is pleased to confirm that the transaction has completed today.

As previously announced, the Board believes the Disposal provides an opportunity to create greater long term value for its shareholders by allowing MMH to focus on its core motor retail business. The Group will continue to focus on its successful strategy of driving both organic growth and increasing UK geographic footprint through targeted acquisitions with existing brand partners.

Completion of the Disposal has also further strengthened the Group's balance sheet, with the net cash proceeds being initially used to reduce existing levels of indebtedness (actual reported net debt as at 30 June 2017: GBP101.1m). As a result of the Disposal, the Group's pro forma balance sheet as at 30 June 2017 would have been ungeared, with net cash of approximately GBP4.6m and net assets of 254p per share.

Daksh Gupta, Chief Executive Officer commented:

"The strategic disposal of our leasing business is an important step for MMH as it has de-geared the Group's balance sheet and allows us to remain focused on driving our core retail operations. I am particularly pleased that MMH has an ongoing relationship with MLL for the supply of new vehicles and we look forward to supporting the continued growth of MLL under its new ownership"

Ends

For further information and enquiries please contact:

 
 Marshall Motor Holdings plc    c/o Hudson Sandler 
 Daksh Gupta, Chief Executive   Tel: +44 (0) 20 
  Officer                        7796 4133 
 Mark Raban, Chief Financial 
  Officer 
 
 Investec Bank plc (Financial   Tel: +44 (0) 20 
  Adviser, NOMAD & Broker)       7597 5970 
 Christopher Baird 
 David Flin 
 David Anderson 
 
 Hudson Sandler                 Tel: +44 (0) 20 
                                 7796 4133 
 Nick Lyon 
  Alex Brennan 
 Bertie Berger 
 

Notes to Editors

About Marshall Motor Holdings plc (www.mmhplc.com)

The Group's principal activities are the sale and repair of new and used vehicles through Marshall Motor Group. Following the recently announced review of its portfolio and the closure of certain loss-making businesses, the Group's ongoing businesses have a total of 99 franchises covering 23 brands, operating from 84 locations across 26 counties in England. In addition, the Group operates five trade parts specialists, four used car centres, five standalone body shops and one pre delivery inspection centre.

In May 2017 the Group was recognised by the Great Place to Work Institute, being ranked the 22nd best place to work in the UK (large company category). This was the eighth year in succession that the Group has achieved Great Place to Work status.

Cautionary statement

This announcement contains unaudited information based on management accounts and forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts and undue reliance should not be placed on any such statements because they speak only as at the date of this document and are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. MMH undertakes no obligation to revise or update any forward-looking statement contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise, save as required by law and regulations.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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November 24, 2017 07:45 ET (12:45 GMT)