Marshall Motor Holdings PLC Pre Close Trading Update (0772D)

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RNS Number : 0772D

Marshall Motor Holdings PLC

25 June 2021

25 June 2021

MARSHALL MOTOR HOLDINGS PLC

("MMH" or the "Group")

Unscheduled Trading Update - Record Results anticipated for 2021

Marshall Motor Holdings Plc, one of the UK's leading automotive retail groups, today provides the following unscheduled trading update given significant upgrades to both first half and full year expectations for 2021.

The market has continued to benefit from positive tailwinds, including a recent unprecedented used vehicle value appreciation and favourable demand-to-supply conditions for both new and used vehicles. In addition, the Group has continued its strong outperformance of the wider new and used vehicle markets.

As a result, the Group expects to report an exceptionally strong first half performance in both profit and cash generation when it issues its interim results on 10 August 2021.

There remains a high level of uncertainty over the second half of 2021, and possibly longer, given the potentially significant impacts of new vehicle supply issues as a result of a well-documented worldwide shortage of semi-conductors, a realignment of used vehicle values and the continuing impact of the COVID-19 pandemic. To date, supply issues have had limited impact on the Group's sales volumes, however supply in both new and used vehicles has tightened and there are signs that these issues will become more acute in the second half of the year and maybe beyond.

As a result, there are a wide range of possible outcomes for the Group's full year results. Despite having committed to repay GBP4.0m of Government support, as previously announced, the Board now expects that continuing underlying profit before tax in 2021 is likely to be significantly ahead of current market expectations and well ahead of the Group's historic record result.

As previously stated, the Board understands the importance of dividends to shareholders and intends to resume the payment of dividends as soon as possible. It will consider the position next at the time of the release of its interim results on 10 August 2021.

ENDS

For further information and enquiries please contact:

 
 Marshall Motor Holdings plc                   c/o Hudson Sandler 
 Daksh Gupta, Chief Executive Officer          Tel: [phone] 
                                                4133 
 Richard Blumberger, Chief Financial Officer 
 Investec Bank plc (Financial Adviser,         Tel: [phone] 
  NOMAD & Broker)                               5970 
 Christopher Baird 
 David Anderson 
 Hudson Sandler                                Tel: [phone] 
                                                4133 
 Nick Lyon 
  Bertie Berger 
 Nick Moore 
 

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. The Group's businesses have a total of 115 franchises covering 22 brands, across 29 counties in England. In addition, the Group operates six trade parts specialists, two used car centres, six standalone body shops and one pre delivery inspection centre.

In April 2021 the Group was recognised by the Great Place to Work Institute, being ranked the 12(th) best place to work in the UK (super large company category). This was the eleventh year in succession that the Group has achieved Great Place to Work status.

LEI number: 213800BP3HZWHDWXAY78

This announcement contains inside information. The person responsible for arranging the release of this announcement on behalf of the Group is Stephen Jones, Group Counsel and Company Secretary.

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. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they 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. There are a number of factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. The Group 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.

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END

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June 25, 2021 02:00 ET (06:00 GMT)