9th Mar 2021 12:54
Marshall Motor Holdings PLC - Cambridge-based auto dealer - Pretax profit improves 3.7% in 2020 to GBP20.4 million from GBP19.6 million in 2019. Revenue slips 5.3% to GBP2.15 billion from GBP2.28 billion. Total new vehicle unit sales down 9.2% with like-for-like total new vehicle unit sales down 19%, but notes this is a strong double-digit outperformance against the UK new vehicle registration decline of 29%. Total used vehicle unit sales down 5.3%, with like-for-like unit sales down 15%, which company says is a "pleasing result" given showroom closures.
Company says it "benefitted significantly" from UK government support measures, including business rates relief, retail grants and the Coronavirus Job Retention Scheme.
"Through a combination of support received from both the [UK] government and our business partners, a number of one-off sector tailwinds and our continued and significant outperformance of the wider market, we are pleased to report an underlying profit before tax for the Year of GBP20.9 million. Our financial position also remains strong, with adjusted net cash at 31 December 2020 of GBP28.8 million," Chief Executive Daksh Gupta says.
Cancels 2020 final dividend, after not declaring interim dividend.
"Whilst the group has performed well and its financial position is strong, the board is mindful of the significant support the group has received both from government measures such as business rates relief and CJRS and from other stakeholders," the company explains.
It adds: "As a result, the board feels it would be inappropriate to recommend the payment of a final dividend for 2020."
Plans resumption of dividends as soon as conditions allow and will consider the position next at the time of release of its interim results in August 2021.
Gupta says: "Our resilient business model, ability to adapt to changing consumer behaviours, such as those enforced by showroom closures, together with our exceptionally strong relationships with our brand partners, gives us confidence in the group's future prospects and success."
Current stock price: 152.80 pence, up 6.1% on Tuesday
Year-to-date change: up 8.8%
By Paul McGowan; [email protected]
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