Marshall Motors has signaled takeovers will recommence as the market consolidates in its latest half-year results.
The group’s half-year results were, unsurprisingly, down on last year, with an underlying loss before tax of £8.9 million against a profit of £15.2m in the first six months of 2019. However, the group claimed it has outperformed the market and as seen “encouraging sales performance since 1 June”.
Marshall Motors CEO Daksh Gupta said the group was “well placed to capitalise on value accretive growth opportunities” as Covid-19 forces network rationalisations.
Revenue for the first half of 2020 dropped to £895.3m against £1.18bn last year with last year’s profit-before-tax figure of £14.8m dropping to a loss of £10.7m this year.
Commenting on the results Daksh Gupta, Marshall Motors’ chief executive officer, 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 the 1st of June, trading has been robust and our important Q3 order take is encouraging.
“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.”
[source: Auto Retail online]