Pre-close Statement and Notice of Results

12 January 2016

MARSHALL MOTOR HOLDINGS PLC

("MMH" or the "Group")

Pre-close Statement and Notice of Results

Marshall Motor Holdings plc, one of the UK's leading automotive retail and leasing groups, issues its pre-close statement ahead of the release on 17 March 2016 of its full year results for the twelve months ended 31 December 2015 (the "Period").

The Group continued to build on the strong financial performance reported during the first half of the Period with further material improvement in profitability during the second half of the Period.

During the Period the Group's financial performance in both its retail and leasing divisions was ahead of the comparable period in 2014. This was partly offset, as expected, by increases in central costs (including additional costs related to our new public company status as reported in the first half of the Period).

The Board's outlook for the Period thus remains in line with its expectations, being a significant increase on the year ending 31 December 2014 despite absorbing the increased costs referred to above.

Divisional Performance

The Group's retail division continued to show good growth in both revenue and profitability during the Period compared to 2014 This was driven by a combination of contributions from recently acquired businesses, brand portfolio management in the prior year in line with strategy and like-for-like growth. The Group also recorded like-for-like unit growth in both new and used vehicle sales and aftersales revenues during the Period.

During the first half of the Period, the Group's fully integrated leasing division reported a material growth in profitability, largely driven by increased de-fleet activity. As anticipated, fleet disposals in the second half of the Period were more in line with those reported in the comparable period in 2014. Residual values remained robust and the number of vehicles in the fleet at the end of the Period was, as expected, broadly in line with last year.

Strategic Update

On 17 November 2015 the Group announced the acquisition of S.G. Smith Holdings Limited for a cash consideration of £24.4m. The acquisition represented a major expansion of the Group's relationship with Audi UK, a strengthening of our Skoda representation and an extension of our partnership with Mercedes Benz in commercial vehicles. It also extended the Group's geographic footprint in attractive new markets across Kent, Surrey and London. The acquisition is expected to be materially earnings enhancing for the year ended 31 December 2016 and to generate a return on investment* in excess of the Group's cost of capital in the following year. In addition, the Group incurred transaction fees and expenses in connection with the acquisition of approximately £0.5m.

The Group continues to build its acquisition pipeline in line with our stated strategy at IPO to grow scale with existing brand partners and expand our geographic footprint. The size of the respective opportunities varies; our focus remains on ensuring a strong strategic and financial case for ‎any transaction we seek to make. 

Financial Position

The Group's balance sheet remains strong and we closed the Period with a positive adjusted net cash position (excluding leasing debt). The remaining net proceeds of the IPO, together with the Group's £75m revolving credit facility, which is currently undrawn, provide significant resources to fund further organic and acquisition-driven growth.

Full Year Results

The Group will publish its full year results for the twelve months ended 31 December 2015 on 17 March 2016.

\* The 'return on investment' is a simplified calculation comprising net operating profit after tax divided by invested capital. We consider this a useful criteria to assess acquisitions, though alternative calculations could also be applied.

For further information and enquiries please contact:

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 Motors and the leasing of vehicles through Marshall Leasing. The Group's businesses are integrated and include a total of 76 franchises covering 24 brands, operating from 68 sites across 19 counties in England. Its diverse portfolio means it represents manufacturer brands whose combined share of all new vehicle sales in the UK gives the Group the highest market coverage of any UK dealer group. In addition, the Group operates four trade parts businesses, two used car centres, two stand-alone bodyshops and a petrol forecourt.

With revenues of £1.1bn in 2014, the Group is the tenth largest dealer group in the UK.

In May 2015 the Group was recognised by the Great Place to Work Institute, being ranked the 26th best place to work in the UK (large company category).

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 MMH'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.