Recovery across the board in first half
Marshall of Cambridge’s results for H1 were very impressive, with all businesses delivering an uplift in revenue and margins. The most spectacular was Motor Retail, performing at record levels, with guidance improving three times during the period. The demand/supply imbalance within the used vehicle market has resulted in selling prices increasing by more than 15% y-o-y across the market, in turn, positively influencing gross margins.Within the Aerospace and Defence division revenues increased modestly y-o-y, with the MRO and modification work on the RAF’s fleet of C-130s showing a positive trend, and the completion of the first Hercules KC-130 for the US Marine Corps (USMC) in July, signifying a good start to the potentially substantial contract.
The completion of residential unit sales within the Marleigh development (phase 1a) added profitability and the disposal of The Land North of Cherry Hinton (LNCH) has resulted in strong cash flows into the Property division (MGP). Phase 1b of Marleigh is being marketed with detailed planning permission submitted for phase 2.
H1 2021 proved a busy period for the Group. Not only did revenues and operating profit improve on last year’s pandemic associated difficulties, but a new CEO was appointed, with a new NED joining the Board at the beginning of October, completing the overhaul of the senior management team.
The share price is currently valuing the entire Group at modestly above its stake in MMH, and markedly below NAV. On this basis it would suggest that the three other divisions have only a modestly positive valuation, yet they remain profitable...
Our sum-of-parts valuation gives a raised fair value of 611p per share, comfortably more than double the most recently matched NVPO price.
Cohort is a holding company. Co. operates through its subsidiaries: Empresa de Investigacao e Desenvolvimento de Electronica, S.A., which is engaged in the fields of electronics, tactical and naval communications, command and control; MASS Consultants Limited, which is an electronic warfare operational support, cyber security, secure ICT networks and support to operations business serving customers primarily in defense and security markets; and Marlborough Communications Limited, which is a supplier of electronic communications, information systems and signals intelligence technology to the defense and security sectors.
Honeywell International is a technology and manufacturing company. The company has four segments: Aerospace, which supplies products, software and services for aircrafts; Honeywell Building Technologies, which provides products, software, solutions and technologies including building control and optimization, energy management, access control, video surveillance, fire products, and remote patient monitoring systems; Performance Materials and Technologies, which develops and manufactures chemicals and materials, process technologies and automation solutions; and Safety and Productivity Solutions, which provides products and software that improve productivity, workplace safety and asset performance.
Lockheed Martin is a security and aerospace company. The company has four segments: Aeronautics, which is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of military aircraft; Missiles and Fire Control, which provides air and missile defense systems, logistics, fire control systems, and mission operations support; Rotary and Mission Systems, which provides design, manufacture, service and support for military and commercial helicopters, radar systems, and simulation and training services; Space, which researches, designs, develops, engineers and produces satellites, space transportation systems, and strategic, strike, and defensive systems.
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.
Vertu Motors is engaged in the sale of new cars, motorcycles and commercial vehicles and used vehicles, together with related aftersales services. Co. also provides management services to all subsidiary statutory entities.
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