Marshall Motor Holdings - Polishing the portfolio
MMH has announced a tidying up of its dealership portfolio with six underperforming sites to be closed by the end of the year. While there will be exceptional closure costs of c£6m, the closures will eliminate c£1.3m of operational losses expected in 2017. Although £4m of the cost is cash this will flow out over a number of years against an onerous lease, and the disposal of Marshall Leasing, which has yet to complete, significantly improves the balance sheet. Our underlying numbers remain unchanged and it should be noted that management has not needed to make a trading update despite persistent new car market weakness. The elimination of losses and manufacturer responsiveness to the weaker demand appear to be setting a solid foundation for 2018 numbers.Marshall Motor Holdings PLC is a holding company. Co. is an automotive retail group. The principal activity of Co.'s subsidiary undertakings is the sale and servicing of passenger cars and commercial vehicle and associated activities. Co. is organised into one business segment being the retail segment. The retail segment includes sales of new and used vehicles, together with the associated ancillary aftersales services of; servicing, body shop repairs and parts sales.
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