Marshall Motor Holdings reveals impact of Covid-19 on half-year results
Marshall Motor Holdings has revealed the impact of Covid-19 on its business for the first half of the year.
The business made a reported loss of £10.7million for the period, compared to a profit of £14.8m in the first half of 2019.
The company was required to closed all of its showrooms between March 23 and June 1 due to the coronavirus lockdown.
Despite this, the unaudited interim results show it still recorded revenues of £895.3m for the first half of the year, although this was, unsurprisingly, significantly down on the £1,183.3m revenue in the first half of 2019.
Marshall retained a retail presence online during the lockdown, while its 62 strategic aftersales operations remained open to support emergency services, commercial vehicle operators and key workers.
Prior to lockdown, it was trading significantly ahead of the market.
For the six-month period, it recorded a 37.7 per cent decline in new vehicle sales compared to the previous year - ahead of the 48.5 per cent decline in the market.
Used car sales were down only 31.8 per cent, despite the showroom closures, while aftersales revenue fell only 28.5 per cent.
No interim dividend has been declared.
Some 88 per cent of workers have now returned from company-enhanced furlough arrangements, and the business is reporting “encouraging” sales performance since June 1.
CEO Daksh Gupta said: "Despite the significant challenges presented by Covid-19, the group has delivered a resilient first half performance and once again outperformed the market. Since full reopening under Covid-19 secure guidelines on June 1, trading has been robust and our important Q3 order take is encouraging.
“This has been achieved as a result of our highly engaged and professional colleagues who have gone above and beyond during this difficult period and I am incredibly proud of their commitment and dedication.
“On behalf of the board I would like to take this opportunity to sincerely thank them for their passion, hard work and support. I would also like to take the opportunity to thank our brand and business partners who have been exceptionally supportive throughout.
“The impact of Covid-19 will accelerate the rationalisation and consolidation of the UK franchise dealer network.
“With the group's excellent brand partner relationships, strong balance sheet, recently renewed £120m revolving credit facility, depth of management team and highly engaged colleagues, the group believes it is well placed to capitalise on value accretive growth opportunities and is therefore well placed to deliver long-term shareholder value.”