Share Prices & Company Research

Market News

01 Jun 2020 | 08:04

Marshall Motor warns of interim loss due to Covid-19 lockdowns

(Sharecast News) - Motor retailer Marshall Motor Holdings warned on Monday issued a half-year profits warning as coronavirus-related lockdowns shutteried its showrooms and hammered sales. Marshall, which reported vehicle orders during the lockdown a fifth of those at the same time last year, said full-year financial guidance would remain suspended given continued uncertainty as a result of the pandemic.

"The significant impact of both the temporary closure of the group's physical retail showrooms during the current crisis and a gradual return to a more normalised trading environment is anticipated to result in a loss before tax for the six months ending June 30," said the group.

The AIM-listed group said first-quarter like-for-like new vehicle sales volume was down 10.6%, while used vehicle sales volume dropped 9.7% and aftersales revenues were down 3.1%.

However, Marshall noted some "encouraging signs of demand" for service and repair, and stated it expects some pent-up demand to emerge following the lockdown.

Operating expenses during lockdown were reduced by about 50%, while adjusted net debt dropped to £3.2m at the end of May - down from £30.6m at the end of 2019.

As of 1110 BST, Marshall shares had slipped 6.67% to 105p.
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 16th October 2020
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.