Marshall Motor warns of interim loss due to Covid-19 lockdowns
By Iain Gilbert
Date: Monday 01 Jun 2020
(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.
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10 Lower Thames St,
London EC3R 6EN