Marshall Motor Holdings PLC Portfolio Update - Acquisition and Disposal (1926H)
06 June 2017 - 4:00PM
UK Regulatory
TIDMMMH
RNS Number : 1926H
Marshall Motor Holdings PLC
06 June 2017
6 June 2017
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
Portfolio Update - Acquisition and Disposal
Marshall Motor Holdings Plc, one of the UK's leading automotive
retail and leasing groups, today provides an update on its ongoing
portfolio management in line with the Group's strategy of driving
class leading returns and strategic growth with existing brand
partners in new geographic territories.
Leeds Volvo Acquisition
MMH announces that it has completed the acquisition of the
business and assets of Leeds Volvo from Harratts Group Limited for
GBP77,000.
The addition of Leeds Volvo was completed in full consultation
and with the support of Volvo Car UK. This acquisition further
strengthens the Group's position as the largest franchise partner
of Volvo Car UK by number of sites. As a result, MMH now represents
Volvo in nine locations in the UK: Bishop's Stortford, Cambridge,
Grantham, Leeds, Melton Mowbray, Milton Keynes, Nottingham,
Peterborough and Welwyn Garden City.
The transaction is not expected to have a material impact on the
Group's earnings in the current financial year. It is, however,
expected to be earnings enhancing in future years following the
planned investment to redevelop the site in line with new Volvo
Retail Experience standards and the benefits of being part of a
larger Group are realised.
Vacant Freehold Land Sale
In addition to the acquisition of Leeds Volvo, the Group has
also recently completed the sale of a vacant freehold site in
Totton, Southampton for GBP2m. This site was acquired as part of
the acquisition of Ridgeway Garages (Newbury) Limited announced in
May 2016.
In relation to the acquisition of Leeds Volvo, John Wakefield,
Managing Director of Volvo Car UK, said:
"The transformation of the Volvo brand and product range has
contributed to four years of consecutive sales growth in the UK, a
trend that we fully expect to continue as we replace our
top-selling XC60 model this year. Marshall is a key franchise
partner to Volvo Car UK, operating in nine locations nationwide,
including Cambridge, our 2016 Dealer of the Year. We are pleased to
have supported Marshall's acquisition of Leeds Volvo and look
forward to supporting their plans to upgrade the site to meet our
new Volvo Retail Experience standards and further develop our
representation in the area."
Daksh Gupta, Chief Executive of MMH, said:
"We are pleased to announce the addition of Leeds to our Volvo
division, in line with our strategy of growth with existing brand
partners in new geographic territories. We are excited to extend
our relationship with Volvo and I am also delighted to welcome all
colleagues of Leeds Volvo to Marshall."
"We continue to manage our portfolio to generate class leading
returns for our shareholders and this recent disposal of vacant
land demonstrates our disciplined approach to capital
management."
ENDS
For further information and enquiries please contact:
Marshall Motor Holdings plc c/o Hudson Sandler
Daksh Gupta, Group Chief Executive Tel: +44 (0) 20
7796 4133
Mark Raban, Chief Financial
Officer
Investec Bank plc (Financial Tel: +44 (0) 20
Adviser, NOMAD & Broker) 7597 5970
Christopher Baird
David Flin
David Anderson
Hudson Sandler Tel: +44 (0) 20
7796 4133
Nick Lyon
Alex Brennan
Bertie Berger
Notes to Editors
About Marshall Motor Holdings plc (www.mmhplc.com)
The Group's principal activities are the sale and repair of new
and used vehicles through Marshall Motor Group and the leasing of
vehicles through Marshall Leasing. The Group's businesses have a
total of 104 franchises covering 24 brands, operating from 90
locations across 26 counties in England. In addition, the Group
operates five trade parts specialists, four used car centres, five
standalone body shops and one PDI centre.
In May 2017 the Group was recognised by the Great Place to Work
Institute, being ranked the 22(nd) best place to work in the UK
(large company category). This was the seventh year in succession
that the Group has achieved Great Place to Work status.
In November 2016 Marshall Leasing was named Fleet Service
Company of the Year 2016 by the Association of Car Feet Operators
(ACFO), an award it also won in 2010 and 2013.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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