13th Mar 2019 12:14
LONDON (Alliance News) - Marshall Motor Holdings PLC on Wednesday said it remains cautious about economic outlook for 2019 despite double-digit growth in profit in 2018.
The car and van seller said pretax profit increased by 48% to GBP18.7 million in 2018 from GBP12.6 million a year earlier, despite revenue slipping by 2.0% to GBP2.19 billion from GBP2.23 billion. The reduction in revenue reflects site closures in 2017, Marshall said.
Like-for-like revenue grew, meanwhile, by 1.2% to GBP2.13 billion, despite challenging new and used car markets, the company noted.
Net finance costs decreased in 2018 to GBP6.4 million from GBP7.5 million the year prior, reflecting the ongoing strengthening of the balance sheet and focus on vehicle stock management.
The company declared a dividend of 8.54 pence a share, up 33% from 6.40p paid the year ago.
"The board notes the latest forecast by the Society of Motor Manufacturers & Traders 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," said Chief Executive Daksh Gupta.
"Our order book for the important March plate-change period is, however, encouraging and our outlook for the full year remains unchanged," added Gupta.
Marshall shares were trading 2.2% lower on Wednesday at 162.00 pence each.
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