14 March 2018

Marshall Motor Holdings has revealed record results in its 2017 financial figures with revenue up 19.5% to £2.27 billion and an underlying profit before tax figure of £29.1 million, up 14.4% on 2016.

The group’s new car unit sales were up 12.3% last year which includes cars from the Ridgeway group acquired half way through 2016. However, like-for-like, figures were down 2.6% in 2017.

Marshalls reported used car unit sales were up 17.1% in total and 5.2% on a like-for-like basis. Aftersales revenues were up 20% in total and 2.3% on a like-for-like basis with a claimed margin improvement.

Total gross margin at 11.7% was above last year’s 11.6%. Marshalls reported underlying margin pressure in the discontinued leasing segment but claims this was more than offset by margin growth in the continuing retail segment. However, the group reported margin growth in both new vehicles and aftersales.

Commenting on the results Daksh Gupta, group chief executive, said: “Despite the more challenging market backdrop, the board is pleased to announce another record financial performance which was ahead of our previously upgraded expectations. During 2017 we took a number steps, including the strategic disposal of Marshall Leasing, to prepare the Group for the future. We are now focused exclusively on our motor retail business and with a significantly strengthened balance sheet remain ideally positioned to exploit future opportunities.

“The board notes the latest SMMT UK new car market forecasts for a decline of 5.6% in 2018. As a consequence the board therefore remains cautious about the UK car market in 2018 as it returns to a more normalised level. Our trading performance in the current financial year to date is in line with our expectations and our outlook for the full year remains unchanged.

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

Tags: Marshall Motor Holdings, Marshalls, MMH