Marshall Motor Holdings has reported 74.6% turnover growth and a 354.4% rise in pre-tax profit in its first financial results since the acquisition of Motorline and privatisation by new owner Constellation Automotive.
Turnover totalled to £3.8 billion (2020: £2.15bn) at the Cambridgeshire-based AM100 retail group as its profit before tax rose from £20.9m to £95.2m in a period that was extended to 15 months as a result of the takeover by BCA’s owners and its subsequent de-listing from the London Stock Exchange.
Marshall reported that the easing of COVID-19 lockdowns and the business’s October acquisition of £700m turnover Motorline helped it to sell 68,276 new cars and 77,308 used vehicles in the period to March 31 – 59% and 73.7% up on the 12-month 2020 trading period.
Gross profit margin grew to 8% in new cars and 7.8% in used as supply constraints drove up the cost of vehicles, the group said.
Aftersales revenues rose by 60.6% – again compared to the COVID-impacted 12-months 2020 trading period – to £386.4m as gross margin improved from 45.1% to 46.6%.
As of March 31, the group revealed that it held adjusted net cash of £15.6m (2020: 28.8m) and had a net debt of £193.7m (2020: £70.5m). Its current finance facilities include a £60m revolving credit facility committed until September 2024.
A statement by director Richard Blumberger revealed that the group’s costs had also risen in the period. It stated: “Underlying operating expenses increased by £142.7m to £349.8m. While this increase was mainly driven by the change in accounting reference dates, it also reflects the impacts of acquisitions in the period and the continuation of sector-wide cost pressures.”
At the date of the financial report Marshall said that it operated 160 retail sites with 26 brand partners.
The group also incurred £23.7m in costs as it acquired the freehold land and buildings at Tunbridge Wells Audi, Beckenham Audi and South Lakes Mercedes-Benz.
It also disposed of 11 businesses, however.
Among them were: Newbury Honda; Maidstone Maserati; Newbury Nissan; Motorline Drive Now used cars sales; Cambridge used cars; the Sydenham Audi used vehicle franchise; Brighton TPS; and Grimsby Volkswagen.