Marshall Motor Holdings PLC Marshall becomes UK's largest Skoda retailer (6674R)
04 March 2019 - 6:00PM
UK Regulatory
TIDMMMH
RNS Number : 6674R
Marshall Motor Holdings PLC
04 March 2019
4 March 2019
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
Marshall completes two acquisitions to become the UK's largest
KODA retailer
Marshall Motor Holdings Plc, one of the UK's leading automotive
retail groups, is pleased to announce that it has completed two
acquisitions comprising six KODA franchised dealerships. Marshall
is now the UK's largest KODA retailer which is line with the
Group's strategy to become the UK's premier automotive group.
The Group acquired the business and assets of Leicester and
Nottingham KODA from Sandicliffe Limited on 31 January 2019. It
subsequently acquired the business and assets of Bedford, Harlow,
Letchworth and Northampton KODA from Progress Bedford Limited on 28
February 2019. Each acquisition was completed in consultation with,
and with the support of, KODA UK.
The aggregate cash consideration paid for the goodwill and fixed
assets of the acquired businesses was GBP3.5m. Each of the acquired
businesses operates from leasehold properties which are fully
compliant with the latest KODA brand requirements. The acquired
businesses made aggregate losses before tax* of approximately
GBP0.4m in the twelve months ended 31 December 2018 and as a
result, the transactions are expected to be earnings dilutive in
the current financial year. They are, however, expected to be
earnings enhancing in future years.
As a result, the Group now represents KODA in 11 locations in
the UK: Barnstaple, Bedford, Croydon, Harlow, Leicester,
Letchworth, Newbury, Northampton, Nottingham, Oxford and
Reading.
KODA has enjoyed strong growth in recent years. In 2018, the
brand achieved 74,512 registrations which represented a UK market
share of 3.2% and has seen a 13% growth in the last 5 years. This
has been driven by significant product development, particularly
across the SUV segment, and this is expected to increase further
with the introduction of new models in 2019. The brand is part of
the Volkswagen Group which has announced it will invest almost
EUR44 billion on electrification and new mobility services.
Daksh Gupta, Chief Executive of MMH, said:
"These acquisitions are an exciting milestone for Marshall in
which we become KODA's largest UK retailer by adding six further
sites in excellent locations which are contiguous to our existing
KODA sites. The acquired businesses have good potential for growth
and improvement in their operating performance as part of a scaled
and focused division.
We believe it is the right time to grow our portfolio with KODA
and these acquisitions demonstrate our commitment to our stated
strategy to grow with existing brand partners in new geographic
territories. We are very proud to represent the KODA brand and wish
to thank the KODA UK management team for their support over the
years and we look forward to building on our excellent
relationship.
I would like to welcome all colleagues of the acquired
businesses to Marshall."
Rod McLeod, Director of SKODA UK said:
"Marshall Motor Holdings Plc is a well-respected and established
vehicle dealership group. These acquisitions will see Marshall
become our largest retail investor and I am very pleased that
together we will continue to expand our offer of class-leading
products to customers across the UK. KODA continues to go from
strength to strength. With the arrival of new models and the
brand's first electric vehicles just around the corner, this is a
key time for Marshall to further invest in KODA."
ENDS
* annualised results applying the Group's accounting
policies
For further information and enquiries please contact:
Marshall Motor Holdings plc c/o Hudson Sandler Tel: +44 (0)
20 7796 4133
Daksh Gupta, Chief Executive
Richard Blumberger, Chief Financial
Officer
Investec Bank plc (NOMAD & Broker) Tel: +44 (0) 20 7597 5970
Christopher Baird
David Flin
David Anderson
Hudson Sandler Tel: +44 (0) 20 7796 4133
Nick Lyon
Bertie Berger
Nick Moore
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. The Group's businesses comprise a total of 106
franchises covering 23 brands, operating from 89 locations across
27 counties in England. In addition, the Group operates five trade
parts specialists, three used car centres, five standalone body
shops and one pre delivery inspection centre.
In April 2018 the Group was recognised by the Great Place to
Work Institute, being ranked the 21st best place to work in the UK
(large company category). This was the eighth year in succession
that the Group has achieved Great Place to Work status.
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END
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