interim report & accounts 2020/media/files/m/marshall... · marshall motor holdings plc |...

23 BRAND PARTNERS 132 OPERATING UNITS 28 COUNTIES NATIONWIDE

Marshall Motor Holdings plc

Airport House, The Airport, Cambridge, CB5 8RY

www.mmhplc.com

© 2020 Marshall Motor Holdings plc

Interim Report & Accounts 2020 Six months ended 30 June

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Marshall Motor Holdings plc | Interim Report & Accounts 2020


People are at the heart of our success

62Workshops stayed open to

provide essential services to

key workers during lockdown

Online HUB introduced to

keep colleagues updated

and entertained

Regular social media posts

to keep customers updated

Twice weekly colleague video

updates from senior team

Stay Safe, Stay Positive, Stay Marshall

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3

MARSHALL MOTOR HOLDINGS PLC (“MMH”, the “Group” or the “Company”)

Unaudited interim results for the six months ended 30 June 2020

Resilient H1, encouraging reopening, confident of long-term prospects

1 “Like-for-like” businesses are defined as those which traded under the Group’s ownership throughout both the period under review and the whole of the corresponding comparative period

2 Underlying profit before tax is presented excluding non-underlying items (see Note 6) 3 Adjusted net cash is presented excluding the impact of the recognition of lease

liabilities under IFRS 16 (see the Net Debt Reconciliation)

4 Reported net cash includes the impact of the recognition of lease liabilities under IFRS 16 (see the Net Debt Reconciliation)

5 Registrations as reported by the Society of Motor Manufacturers and Traders

Financial Summary

H1 2020 H1 2019

Revenue (£m) 895.3 1,183.3

Gross profit (£m) 95.2 135.0

Underlying operating expenses (£m) (98.8) (114.9)

Underlying operating loss/profit (£m) (3.6) 20.2

Net finance costs (£m) (5.3) (5.0)

Underlying loss/profit before tax (£m) (8.9) 15.2

Non-underlying items (£m) (1.8) (0.4)

Reported loss/profit before tax (£m) (10.7) 14.8

Net assets (£m) 190.5 200.7

Basic Underlying EPS (p) (11.2) 15.0

Adjusted net cash (£m) 27.4 5.8

Reported net debt (£m) (77.5) (82.2)

Marshall Motor Holdings plc, one of the UK’s leading automotive retail groups, announces its unaudited interim

results for the six months ended 30 June 2020 (“H1” or the “Period”).

Responding to COVID-19

• Closure of all businesses from 23 March to 1 June other than 62 strategic aftersales operations which remained open

to support emergency services, commercial vehicle operators and key workers;

• Maintained retail presence online and by telephone to support customers;

• Continued disciplined cost mitigation and cash preservation actions taken;

• Coronavirus Job Retention Scheme (CJRS) utilised to protect employment of furloughed colleagues on Company-enhanced terms; 88% of colleagues now returned to work;

• Detailed reactivation plan implemented to reopen businesses under revised, COVID-19 secure operating procedures;

• Encouraging sales performance since 1 June.

Operational and Financial Performance • Trading significantly ahead of the market in period prior to COVID-19 closure;

• Like-for-like new vehicle unit sales down 37.7%, a strong outperformance versus market registrations down 48.5%;

• Like-for-like used unit sales down 31.8%, a pleasing result given the impact of lockdown on franchised retailers;

• Like-for-like aftersales revenue down 28.5%, a strong performance in the current environment;

• Adjusted net cash at 30 June: £27.4m (30 June 2019: adjusted net cash of £5.8m; 31 December 2019: adjusted net debt of £30.6); benefiting primarily from significant working capital inflows and also VAT Payment Deferral Scheme;

• £120m revolving credit facility extended in July until 2023; covenant amendments agreed;

• No interim dividend declared;

• Tenth year of being a ‘Great Place to Work’ and sixth year of being ranked in the UK’s Best Workplaces.

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4

For further information and enquiries please contact:


c/o Hudson Sandler Tel: +44 (0) 20 7796 4133

Daksh Gupta, Chief Executive Officer

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 117 franchises covering 23 brands, across 28 counties in England. In addition, the Group operates six trade parts specialists, two used car centres, six standalone body shops and one pre delivery inspection centre. In May 2020 the Group was recognised by the Great Place to Work Institute, being ranked the 12th best place to work in the UK (super large company category). This was the tenth year in succession that the Group has achieved Great Place to Work status. Cautionary statement This announcement contains unaudited information based on management accounts and forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts and undue reliance should not be placed on any such statements because they speak only as at the date of this document and are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. MMH undertakes no obligation to revise or update any forward-looking statement contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise, save as required by law and regulations.



5

“Despite the significant challenges presented by COVID-19, the Group has delivered a resilient first half performance and once again outperformed the market. Since full reopening under COVID-19 secure guidelines on the 1 June, trading has been robust and our important Q3 order take is encouraging.

This has been achieved as a result of our highly engaged and professional colleagues who have gone above and beyond during this difficult period and I am incredibly proud of their commitment and dedication. On behalf of the Board I would like to take this opportunity to sincerely thank them for their passion, hard work and support. I would also like to take the opportunity to thank our brand and business partners who have been exceptionally supportive throughout.

The impact of COVID-19 will accelerate the rationalisation and consolidation of the UK franchise dealer network. With the Group’s excellent brand partner relationships, strong balance sheet, recently renewed £120m revolving credit facility, depth of management team and highly engaged colleagues, the Group believes it is well placed to capitalise on value accretive growth opportunities and is therefore well placed to deliver long-term shareholder value.”

Daksh Gupta Chief Executive Officer

Operating Review Introduction Our unaudited interim results for the six months ended 30 June 2020 (“H1” or the “Period”) reflect the unprecedented impact of COVID-19 and the resultant closure of our businesses for a large proportion of the Period. As a result, H1 2020 is characterised by three distinct periods: the period prior to the temporary closure of our showrooms; the lockdown closure period from 23 March until 1 June; and finally the period following the reopening of our businesses on 1 June until 30 June. Trading prior to closure period As previously reported, the Group performed strongly during the first quarter of 2020, significantly outperforming the wider UK new car market together with strong used car and aftersales performances. Safeguarding our business through the closure period Our priority in responding to the COVID-19 pandemic was the safety and wellbeing of our colleagues and customers and we announced the temporary closure of our dealerships on 23 March, prior to the Government requiring car showrooms and all non-essential businesses to close, impacting the busiest week of the year. In recognition of the vital role our aftersales operations play in supporting essential vehicle mobility, the Group kept 62 of its aftersales operations open across the country to support the emergency services, commercial vehicle operators, vulnerable customers and key workers throughout the COVID-19 national emergency. Whilst these operations were run at a small loss, the Board believed it was appropriate for the Company to continue to offer these services to support the country, particularly in light of the various COVID-19 Government support schemes provided to businesses through this period.

We also remained open online and on the telephone to receive and manage customer enquiries. During the closure period the Group took orders for over 3,700 new and used vehicles. This was, inevitably, significantly down on the comparable prior year period during which c.19,000 new and used vehicle orders were taken. The Group furloughed around 90% of its 4,300 colleagues during the closure period. The Group acknowledges the support provided by Government through the Coronavirus Jobs Retention Scheme (CJRS) which has enabled the Group to support its furloughed colleagues and protect their employment. We have since welcomed back 88% of our colleagues and continue to transition more staff safely back into the business as consumer activity levels return. Management estimate the impact of closure was c.£26m. Re-opening under COVID-19 secure operating procedures Following the Government announcement on the 26 May 2020, the Group reopened all showrooms and other operating units from the 1 June 2020. Detailed preparations were made to ensure our business reopened under revised, COVID-19 secure, operating procedures to safeguard our colleagues, customers and all other visitors to our businesses. Trading in the final month of the Period was strong, benefitting, as anticipated, from a combination of a release of pent-up demand, extensions to vehicle financing agreements coming to an end, a shift from use of public transport towards vehicle ownership and the delivery of outstanding vehicle orders not completed prior to the closure period. We have been encouraged by our ability to operate effectively and successfully under our revised operating procedures.



6

Six months ended 30 June 2020

Segmental Analysis

Revenue Gross Profit £m mix* £m mix*

New Car 417.4 45.7% 25.2 26.6%

Used Car 395.6 43.3% 24.3 25.7%

Aftersales 100.3 11.0% 45.2 47.7%

Internal Sales/Other (17.9) - 0.5 -

Total 895.3 100.0% 95.2 100.0%

Six months ended 30 June 2019

Revenue Gross Profit £m mix* £m mix*

New Car 569.1 47.1% 43.6 32.3%

Used Car 509.6 42.2% 33.5 24.9%

Aftersales 129.5 10.7% 57.8 42.8%

Internal Sales/Other (25.0) - 0.2 -

Total 1,183.3 100.0% 135.0 100.0%

New Vehicles

As reported by the Society of Motor Manufacturers and

Traders (‘SMMT’), sales of new vehicles have been

significantly impacted by COVID-19. During the Period, new

car registrations to retail and fleet customers declined by

44.6% and 51.7% respectively with total registrations of new

vehicles in the UK (including the impact of dealer self-

registration activity) declining by 48.5% in the Period. These

declines were predominantly experienced during April and

May when total new registrations were down 97.3% and

89.0% respectively.

These unprecedented market declines significantly impacted

the Group’s sales performance over the Period but the Group

still outperformed the overall market, with a like-for-like decline

in unit sales to new retail customers of 37.7% and 37.7% to

fleet customers. This outperformance was driven by a strong

performance in the first quarter with like-for-like new unit sales

down 10.6%, significantly ahead of the market which was

down 31.0% and a similarly positive performance in June with

like-for-like new unit sales down 10.8%, ahead of the market

which was down 34.9%.

Total new car revenue in the Period was £417.4m (H1 2019:

£569.1m) with like-for-like revenue of £377.6m (H1 2019:

£559.7m), down 32.5%.

Gross profit in new vehicles was down £18.4m, impacted by

a combination of the decline in sold units as well as a

reduction in gross margin of 162bps, down from 7.7% in H1

2019 to 6.0% in H1 2020. The main driver behind the margin

decline being a reduction in volume-related income, including

manufacturer bonuses, as a result of significantly lower new

vehicle sales.

H1 H1 Variance 2020 2019 Total LFL

New Retail Units 11,601 16,108 (28.0%) (37.7%)

Fleet Units 6,280 9,199 (31.7%) (37.7%)

Total New Units 17,881 25,307 (29.3%) (37.7%)

*Revenue and gross profit mix calculated excluding internal sales / other



7

Used Vehicles

Used vehicle sales were also significantly impacted by

COVID-19 during the Period.

The SMMT reported a decline of 168,000 used car

transactions in Q1 2020 versus Q1 2019, an 8.3% decline.

In the first quarter of the year, the Group experienced a like-

for-like decline of 9.7%, broadly in line with the overall market.

In Q2 the overall market was more heavily impacted due to

showroom closures and registered a decline of 995,000 units,

a reduction of 48.9%. This leaves the overall market in H1

down by 28.7% versus 2019. During H1 the Group recorded

a decline of 31.8% on a like-for-like basis broadly in line with

the market. This was a pleasing result given the impact of

lockdown on franchised sector.

Used car sales performance following the reopening of our

businesses has been very encouraging, benefiting from

significant pent-up demand and a shift from use of public

transport towards car ownership, with both order take and

sales increasing versus the respective period in the prior year.

Total used car revenue in the Period was £395.6m (H1 2019:

£509.6m), with like-for-like revenue of £348.4m (H1 2019:

£495.1m), down 29.6%.

Used vehicle residual values have remained robust to date,

with values increasing as a result of demand. It is anticipated

that this initial spike in demand will level off during the latter

part of 2020. The Group continues to monitor this situation

very closely, utilising robust operating controls.

Gross profit in used vehicles reduced from £33.5m in H1

2019 to £24.3m in H1 2020. Gross margin declined by 43bps,

down from 6.6% in H1 2019 to 6.1% in H1 2020, largely

driven by management actions taken to reduce stock levels

at the outset of the crisis and a lower proportion of vehicle

sales during the closure period being sold with financing.


Total Used Units 18,639 24,330 (23.4%) (31.8%)

Aftersales

The Group kept 62 of its aftersales operations open

throughout the closure of its retail showrooms to support

essential vehicle mobility including for emergency and key

workers. These operations were run at a small loss, however

the Board believed it was appropriate for the Company to

continue to offer these services to support the country. The

Group is very grateful to those colleagues who put themselves

forward to ensure these operations could continue.

Total aftersales revenue in the Period was £100.3m (H1 2019:

£129.5m) with like-for-like aftersales revenue down 28.5%.

As a result of MOT and servicing deferrals, the post lockdown

period has been encouraging with a marginal increase in

revenue over the respective period last year. Service plans

have consistently been a key part of the Group’s retention

strategy and this resilient model will continue to provide a

greater level of certainty over future aftersales profits.

Despite the small loss made during the lockdown period,

overall aftersales gross margin improved by 45bps to 45.0%

(H1 2019: 44.6%). Since full re-opening on 1 June, our

aftersales facilities have predominantly been carrying out

delayed scheduled service and maintenance work which

typically have higher margins.


Revenue (£m) 100.3 129.5 (22.6%) (28.5%)



8

Portfolio Management

During the Period, the Group closed its single Maserati

dealership in Peterborough with all colleagues being

redeployed within the Group. This business, which operated

from freehold premises, has been loss making in recent

years.

On 10 July the Group completed the acquisition of Aylesbury

Volkswagen. The Aylesbury business formed part of the

strategic acquisition announced in December 2019. As a

result of the completion, all deferred consideration has now

been paid to Jardine Motor Group UK Limited.

During 2019 the Group added 20 businesses through 8

acquisitions or start-ups. The integration of these businesses

is ongoing and is progressing as planned and we are

encouraged with the progress made. Prior to the lockdown

period these businesses were trading ahead of our

expectations.

The Group continues to review its portfolio to ensure it is

operating with the right brands, in the right locations with

appropriate scale of operation.

The Board believes that the current trading and economic

environment is likely to accelerate further network

rationalisation and consolidation within the automotive retail

sector. The Group’s stated strategy is to grow scale with key

brand partners and extend our geographic footprint into new

regions across the UK. Whilst our focus has been on

navigating our business through the COVID-19 crisis, we

remain committed to our long-term growth ambitions. We

have further headroom to grow with all brand partners in what

we believe, with continuing market uncertainty, will continue

to be a consolidating market in which larger dealer groups

with diversified franchise portfolios will be better placed. The

Board continues to believe that the Group’s strong balance

sheet and excellent manufacturer relationships means it is

well positioned to capitalise on these opportunities as

they arise.

Capital Investment

As part of cash preservation, the Group’s capital expenditure

programme was reviewed and, in collaboration with our

brand partners where necessary, a number of planned

projects have been deferred. As a result, capital expenditure

in the Period was £4.7m, comprising principally of completion

of the refurbishments of Newbury Audi and Wimbledon Audi.

People Centric – Response to COVID-19

As a result of the temporary closure of its businesses, the

Group furloughed around 90% of its 4,300 employees. At

today’s date, 12% of our colleagues remain furloughed

however we continue to monitor business activity and

customer demand patterns which will inform the rate at which

we take colleagues off of furlough and welcome them back

into the business.

The Group acknowledges, and is grateful for, the welcome

support provided by Government through the Coronavirus

Jobs Retention Scheme (CJRS) which has enabled the

Company to support its furloughed colleagues and protect

employment.

The Group worked hard to support its colleagues during this

period of uncertainty. During the furlough period, the Group

supplemented the support provided by the CJRS, enhancing

colleague pay during the closure period to 100% for March,

90% for April and 85% for May and not imposing the CJRS

cap of £2,500 per month. The Group has also provided

additional financial support, including salary advances, to

colleagues where this has been requested.

Whilst they continued to work throughout the closure period,

the Board and other senior members of the management

team voluntarily reduced their pay in line with the reductions

for furloughed colleagues.

In addition to providing financial support to colleagues and in

recognition of the importance of ongoing communication,

over 26 bi-weekly management briefings were issued to all

furloughed colleagues via video message from members of

the executive committee and other members of the senior

management team. This enabled the Group to stay in touch

with furloughed colleagues and provide updates on the

actions taken during the closure period. Weekly video

messages and other communications have continued for

remaining furloughed colleagues.

The ‘Stay Marshall Colleague Hub’, our bespoke internal

employee platform, was regularly updated with key Company

updates as well as less formal, engaging material including

recognition of individual COVID-19 support initiatives, activity

suggestions for children during lockdown, cooking recipes,

TV series reviews etc. We recognised early on the

importance of regular two-way communication with our

colleagues during the lockdown for their health and wellbeing

and actively encouraged all of our people to contribute

material to the Stay Marshall Colleague Hub.

All furloughed colleagues were encouraged to complete

modules of the Company's bespoke training programme via

its online learning platform. As well as 'business as usual'

training programmes relating to financial services and data

protection compliance, all colleagues completed a mandatory

formal training and assessment programme on our revised

operating procedures and social distancing guidelines before

returning to the workplace.

The feedback from colleagues on our communications during

this period has been extremely positive, demonstrating why,

in May 2020, the Company was once again confirmed as

being a 'Great Place to Work' by the Great Place to Work

Institute. This was the tenth consecutive year that the

Company has been so recognised and the sixth consecutive

year that it has been ranked.



9



Financial Review Revenue

Reported revenue declined by 24.3% to £895.3m (H1 2019:

£1,183.3m) with like-for-like revenue decreasing by 30.9%. As

a result of COVID-19 and the resultant closure of our

businesses for a large proportion of the Period, all of the

Group’s revenues streams, new vehicles, used vehicles and

aftersales, declined against the comparable period last year.

Loss Before Tax

As anticipated, despite a strong trading performance in the first

quarter of the year and encouraging trading levels in the period

after reopening on 1 June, as a result of the closure of our

businesses for a large proportion of the Period, the Group’s

reported loss before tax was £10.7m, with an underlying loss

before tax of £8.9m during the Period.

Margin

Gross margin in the Period was 10.6%, a decline of 78bps

versus the comparable period last year. Both overall gross

profit and margin were impacted by a reduction in volume-

related income, including manufacturer bonuses, as a result

of significantly lower vehicle sales during the Period. As a

result, new vehicle margin declined by 162bps to 6.0% and

used vehicle margin declined by 43bps to 6.1%.

Aftersales gross margin at 45.0% (H1 2019: 44.6%) improved

as a result of a greater mix of higher margin scheduled service

and maintenance work.

Costs

Underlying operating costs during the Period were £98.8m,

which included £10.7m relating to acquired businesses. After

adjusting for these, costs were £26.8m lower than in the

comparable period last year. Lower operating costs were

driven by a combination of management actions taken to

control costs throughout the Period and the benefit of various

Government support programmes.

In particular, during the Period:

• the employment cost of furloughed colleagues of £18.2m was

a major driver of this variance, this was largely offset by the

£16.4m claimed by the Group under the CJRS over the

Period. The difference of £1.8m was an investment to

enhance furlough payments to colleagues as referred to

above which is shown in non-underlying expenses;

• the Group benefited from the Government’s business rates

holiday scheme with net savings of £2.3m during the Period.

Ongoing savings will continue until March 2021;

• the Group reduced marketing costs, vehicle-related running

costs, transportation costs, property-related costs and the

Board and other senior management took voluntary pay

reductions.

The Group acknowledges the vital support of the Government,

along with many of our brand partners and suppliers through

this challenging period.

Total finance costs of £5.3m during the Period were £0.3m

higher than the same period last year. This was driven by a

combination of increased vehicle stocking charges as a result

of higher levels of consignment stock (including stock

attributable to our newly acquired sites) and a precautionary

drawdown from our revolving credit facility.

Non-Underlying Items

During the Period, the Group incurred net £1.8m of non-

underlying costs, principally related to costs directly attributable

to the COVID-19 pandemic (£2.8m), integration costs relating

to 2019 acquisitions and the closure of Peterborough Maserati

(£0.5m), partially offset by a profit on disposal of a vacant

Leicester Vauxhall freehold asset held for resale of £1.6m. The

costs directly attributable to the COVID-19 pandemic includes

£1.8m to “top-up” colleagues’ salaries above the 80% furlough

scheme after utilising the CJRS to support the employment

costs of its furloughed colleagues.

Tax

The reported effective tax rate for the Period was -15.0%

(H1 2019: 22.8%). The underlying effective tax rate for the

Period was 1.6% (H1 2019: 22.6%).

Capital Expenditure

Capital expenditure during the Period was £4.7m. This was

lower than forecast as a result of the deferral of certain planned

property investments agreed, where necessary, with the

support of our brand partners. Key expenditure items were

the refurbishment of Newbury Audi and Wimbledon Audi.

At 30 June 2020, the Group had £123.9m of freehold property

and assets under construction (30 June 2019: £120.9m),

equivalent to £1.58 per share.

10


Financial Position

The Group’s adjusted net cash position at 30 June 2020 was

£27.4m compared to an adjusted net cash position of £5.8m

at 30 June 2019 and adjusted net debt of £30.6m at

31 December 2019.

There are a number of drivers behind this strong cash position,

including:

• working capital benefits of revised vehicle stocking payment

periods implemented by our brand partners and other funding

providers to support dealer networks (£24.3m);

• the benefit of the Government’s VAT Payment Deferral

Scheme (£10.0m);

• other VAT payment timing benefits (£9.9m);

• cancellation of the 2019 final divided (£4.5m);

• the benefit of an historic VAT reclaim (£2.8m);

• proceeds from the sale of a freehold property in Leicester

(£2.8m including VAT);

• support and agreement with a number of the Group’s

landlords regarding rent holidays, reduced rents or revised

rental payment terms (£1.5m);

• capital expenditure savings (c.£5m);

These measures effectively protected the Group’s cash

position over the closure period. It is anticipated that a number

of these cash benefits (including VAT deferrals, working capital

benefits of revised vehicle stocking payment periods and rent

deferrals) will reverse as the Group returns to a more

normalised trading environment.

It is also noted that, unless otherwise agreed in advance, the

Group continued to pay all suppliers in line with its usual

payment terms during the Period.

Funding Position

The Group’s £120m revolving credit facility (RCF) with

Barclays and HSBC was due to expire in June 2021. The RCF

banks remain extremely supportive of the Group and,

subsequent to the Period end, the RCF has been extended to

January 2023.

The Group also agreed revised financial covenants for the

remainder of current financial year which, if necessary, will be

reviewed in 2021 in light of prevailing trading conditions at that

time. In line with current market conditions, the interest rate

on drawings under the extended RCF has increased.

Given the Group’s positive cash position, the RCF was

undrawn at the 30 June 2020 and remains undrawn at the date

of these interim results.

The Board is satisfied that, in combination with its committed

stock funding facilities, the RCF provides sufficient liquidity to

enable the Group to withstand even its most extreme downside

scenarios (including the possibility of further, extensive

localised lockdown periods). Further details of the Board’s

downside scenario planning are set out in the notes to these

interims results.

Interim Dividend As announced at the start of the COVID-19 crisis, in order to

maximise the Group’s financial resilience, the Board made the

decision to cancel the final dividend in respect of 2019,

preserving £4.5m of cash.

Due to the ongoing uncertainty regarding the potential future

impact of COVID-19 and resultant impact on the UK economy,

the Board is not declaring an interim dividend. The Board is

also mindful of the support provided by the Government

through initiatives such as CJRS and business rates relief from

which the Group has benefited and therefore the Group’s

immediate priority is to maintain its financial resilience to

enable future investment, growth and job retention.

The Board is very mindful of the importance of dividends to its

shareholders and intends to resume the payment of dividends

as soon as conditions allow and will consider the position next

at the time of release of its full year results in March 2021.


11



12

Summary and Outlook

The COVID-19 pandemic significantly impacted the Group’s financial performance during the Period and its effects are

likely to continue to be felt for at least the remainder of the year. It has also reinforced the strength and resilience of the

Group’s business model, its balance sheet and its operational focus. With the support of our brand partners, funders and

other business partners, together with careful management of costs and cash, combined with our people-centric approach

to our colleagues and with the support provided by Government, we have been able to successfully navigate the initial

challenges presented by this crisis.

The period following the reopening of showrooms in June has been encouraging with an improvement in like-for-like order

take throughout June, July and the early part of August. Our key September order bank is also building well.

The business has performed strongly since reopening and is currently targeting a break even underlying profit before tax

performance for the financial year. Given the significant economic uncertainties caused by COVID-19, including the

possibility of future nationwide or localised lockdowns, the Board believes there is a range of possible outcomes and it is

right to remain cautious regarding the outlook for the remainder of the year.

Finally, on behalf of the Board, I would like to thank all of our brand partners, funders and other business partners for their

support during this period. I would also like to give special thanks to colleagues across our business for their tireless work,

resilience in the face of such challenging circumstances and for their support and encouragement throughout the Period.

Daksh Gupta

Chief Executive Officer

17 August 2020



Automotive Retail Employer

Colleagues

4,300

As Voted by our Colleagues

No.1

36,520New and Used Units Sold

Revenue

£895.3m

£190.5mNet Assets

Visits to marshall.co.uk

2.7m

£4.7 million

Investment in retail sites

Operating Units

132

13



14


Condensed Consolidated Statement of Comprehensive Income For the six months ended 30 June 2020

Non- Non- Underlying underlying Underlying underlying items items Total items items Total 2020 2020 2020 2019 2019 2019 Note (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) £'000 £'000 £'000 £'000 £'000 £'000

Revenue 4 895,332 – 895,332 1,183,267 – 1,183,267

Cost of sales (800,152) – (800,152) (1,048,240) – (1,048,240)

Gross profit 95,180 – 95,180 135,027 – 135,027

Net operating expenses (98,775) (1,786) (100,561) (114,872) (400) (115,272)

Operating (loss)/profit (3,595) (1,786) (5,381) 20,155 (400) 19,755

Net finance costs 7 (5,344) – (5,344) (4,999) – (4,999)

(Loss)/profit before taxation 5 (8,939) (1,786) (10,725) 15,156 (400) 14,756

Taxation 8 147 (1,758) (1,611) (3,432) 72 (3,360)

(Loss)/profit from operations after tax (8,792) (3,544) (12,336) 11,724 (328) 11,396

Total comprehensive (loss)/ income for the year net of tax (8,792) (3,544) (12,336) 11,724 (328) 11,396

Earnings per share (EPS) attributable to equity shareholders of the parent

Basic 9 (11.2) (15.8) 15.0 14.6

Diluted 9 (11.2) (15.8) 14.7 14.3

All activities of the Group in both the current and prior period are continuing.

The above Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.


Condensed Consolidated Balance Sheet At 30 June 2020

30 June 30 June 31 December 2020 2019 2019

Note (unaudited) (unaudited) (audited) £'000 £'000 £'000

Non-current assets

Goodwill and other intangible assets 12 119,208 115,464 119,260

Property, plant and equipment 13 157,665 151,203 159,293

Right-of-use assets 104,164 86,252 107,967

Investment property 3,638 2,590 3,638

Non-current financial assets 1,388 1,356 1,442

Total non-current assets 386,063 356,865 391,600

Current assets

Inventories 401,211 376,429 470,700

Trade and other receivables 96,846 112,991 87,462

Cash and cash equivalents 32,711 11,938 110

Assets classified as held for sale 6 – 797 797

Current tax assets 252 – –

Total current assets 531,020 502,155 559,069

Total assets 917,083 859,020 950,669

Non-current liabilities

Loans and borrowings 4,703 5,505 5,024

Lease liabilities 93,881 76,670 97,396

Trade and other payables 6,392 5,849 6,371

Provisions 305 – 299

Deferred tax liabilities 21,950 19,830 20,134

Total non-current liabilities 127,231 107,854 129,224

Current liabilities

Loans and borrowings 641 641 25,641

Lease liabilities 10,968 11,314 10,689

Trade and other payables 585,651 533,237 578,010

Provisions 2,092 2,441 3,085

Current tax liabilities – 2,873 1,704

Total current liabilities 599,352 550,506 619,129

Total liabilities 726,583 658,360 748,353

Net assets 190,500 200,660 202,316

Shareholders’ equity

Share capital 11 50,068 50,030 50,068

Share premium 19,672 19,672 19,672

Share-based payments reserve 11 1,545 1,487 1,025

Own shares reserve (12) – (12)

Retained earnings 119,227 129,471 131,563

Total equity 190,500 200,660 202,316


15


16

Condensed Consolidated Statement of Changes in Equity For the six months ended 30 June 2020

Share- based Own Share Share payments shares Retained Total Note capital premium reserve reserve earnings equity £'000 £'000 £'000 £'000 £'000 £'000

Balance at 1 January 2019 49,834 19,672 1,570 – 122,962 194,038

Profit for the period – – – – 11,396 11,396

Total comprehensive income – – – – 11,396 11,396

Transactions with owners

Dividends paid 10 – – – – (4,995) (4,995)

Issue of share capital 11 196 – – (196) – –

Exercise of share options 11 – – (863) 196 108 (559)

Share based payments charge – – 780 – – 780

Balance at 30 June 2019 (unaudited) 50,030 19,672 1,487 – 129,471 200,660

Profit for the period – – – – 4,182 4,182

Total comprehensive income – – – – 4,182 4,182


Dividends paid – – – – (2,228) (2,228)

Issue of share capital 11 38 – – (38) – –

Exercise of share options 11 – – (812) 189 138 (485)

Acquisition of own shares – – – (163) – (163)


Balance at 31 December 2019 (audited) 50,068 19,672 1,025 (12) 131,563 202,316

Balance at 1 January 2020 50,068 19,672 1,025 (12) 131,563 202,316

Loss for the period – – – – (12,336) (12,336)

Total comprehensive loss – – – – (12,336) (12,336)



Balance at 30 June 2020 (unaudited) 50,068 19,672 1,545 (12) 119,227 190,500



Condensed Consolidated Cash Flow Statement For the six months ended 30 June 2020

2020 2019 Note (unaudited) (unaudited)

£'000 £'000

Operating (loss)/profit (5,381) 19,755

Adjustments for:

Depreciation and amortisation 5 11,107 9,864

Share-based payments charge 617 865

Profit on disposal of assets classified as held for sale 6 (1,563) –

Profit on disposal of property plant and equipment 5 – (6)

Profit on disposal and remeasurement of right-of-use assets and lease liabilities 5 – (635)

Loss on impairment of right-of-use assets 5 14 112

Cash flows from operating activities 4,794 29,955

Decrease in inventories 69,489 10,059

Increase in trade and other receivables (9,384) (33,225)

Increase in trade and other payables 8,200 40,046

Decrease in provisions (987) (182)

Settlement of defined benefit pension scheme – (5,567)

Total cash flows generated by operations 72,112 41,086

Tax paid (1,751) (2,333)

Interest paid on lease liabilities (1,582) (1,547)

Other net finance costs (3,762) (3,452)

Net cash inflow from operating activities 65,017 33,754

Investing activities

Purchase of property, plant, equipment and software 12/13 (4,682) (7,762)

Acquisition of businesses, net of cash acquired 12 – (5,582)

Lease payments received under finance leases 93 78

Interest received under finance leases 42 30

Proceeds from disposal of property, plant and equipment 145 473

Proceeds from disposal of assets classified as held for sale 2,360 –

Net cash outflow from investing activities (2,042) (12,763)

Financing activities

Proceeds from borrowings 40,000 20,000

Repayment of borrowings (65,321) (20,160)

Repayment of lease liabilities (5,053) (4,364)

Dividends paid 10 – (4,995)

Settlement of exercised share awards 11 – (708)

Net cash outflow from financing activities (30,374) (10,227)

Net increase in cash and cash equivalents 32,601 10,764

Cash and cash equivalents at 1 January 110 1,174

Cash and cash equivalents at period end 32,711 11,938


17


18

Net Debt Reconciliation For the six months ended 30 June 2020

2020 2019 (unaudited) (unaudited)

£'000 £'000

Reconciliation of net cash flow to movement in net debt

Net increase in net cash and cash equivalents 32,601 10,764

Proceeds from drawdown of RCF (40,000) (20,000)

Repayment of drawdown of RCF 65,000 20,000

Repayment of other borrowings 321 160

Change in lease liability commitments (3,357) (6,223)

Repayment of lease liabilities 6,593 5,881

Decrease in net debt 61,158 10,582

Opening net debt (138,640) (92,774)

Net debt at period end (77,482) (82,192)

Lease liabilities (104,849) (87,984)

Adjusted net cash at period end (non GAAP measure) 27,367 5,792




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Notes to the Condensed Consolidated Financial Statements

1. General information

Marshall Motor Holdings Plc (the Company) is incorporated and domiciled in the United Kingdom. The Company is a public limited company, limited by shares, whose shares are listed on the Alternative Investment Market (AIM) of the London Stock Exchange. The Company is registered in England under the Companies Act 2006 (registration number 02051461) with the address of the registered office being: Airport House, The Airport, Cambridge, CB5 8RY, United Kingdom.

These interim condensed consolidated financial statements were authorised for issue by the Board of Directors on 17 August 2020.

Basis of preparation

The interim condensed consolidated financial statements for the six months ended 30 June 2020 have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union. They do not include all the information and disclosures required for full annual financial statements and should be read in conjunction with the Group’s consolidated financial statements for the year ended 31 December 2019. A copy of the full Annual Report and Accounts for the year ended 31 December 2019 can be found on the Marshall Motor Holdings Plc website at: www.mmhplc.com.

The interim condensed consolidated financial statements for the six months ended 30 June 2020, and for the comparative six months ended 30 June 2019, are unaudited but have been reviewed by the Auditor. A copy of their Review Report is set out at the end of these financial statements. The financial information for the year ended 31 December 2019 does not constitute the Group’s statutory financial statements for that period as defined in section 434 of the Companies Act 2006, but is instead an extract from those financial statements. The Group’s financial statements for the year ended 31 December 2019 were authorised for issue by the Board of Directors on 9 March 2020 and have been delivered to the Registrar of Companies. The Auditor’s Report on those financial statements contained an unqualified opinion, did not draw attention to any matters by way of emphasis and did not contain any statement under section 498 of the Companies Act 2006.

During the period the Group has adopted the amendments to IAS 1 Presentation of Financial Statements, IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, IFRS 3 Business Combinations which has had no impact on the financial statements. The Group has also adopted the amendment to IFRS 16 Leases which has not had a material impact on the financial statements.

The interim condensed consolidated financial statements are prepared in Sterling, which is the presentational currency of the Group. All values are rounded to the nearest thousand pounds (£’000) except where otherwise indicated.

Principal risks and uncertainties

With the exception of the areas disclosed below, the principal risks and uncertainties for the six months ended 30 June 2020 are consistent with those set out in the Marshall Motor Holdings Plc 2019 Annual Report and Accounts dated 9 March 2020 and are expected to be consistent for the year ending 31 December 2020.

Brexit

The UK has left the EU and following the end of the transition period on 31 December 2020 the future terms of UK/EU trade will be dependent upon the outcome of the negotiations between the UK Government and EU. If an agreement is not reached trading will be based upon the World Trade Organization rules from 1 January 2021.

The COVID-19 pandemic has impacted the progress of negotiations; however, it remains possible that a successful negotiated outcome between the UK and EU will be reached. The COVID-19 pandemic has already created economic uncertainty and a failure to reach a mutually beneficial trade agreement likely to introduce further risk and instability. The Group is monitoring the status of negotiations and the forecast impacts of these upon the UK macroeconomic environment.



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1. General information (continued)

Principal risks and uncertainties (continued)

Brexit (continued)

The Group is not a direct importer of vehicles and parts from the EU, as it makes purchases from manufacturers’ UK national sales companies (“NSC”) which have primary responsibility for managing imports to the UK, however changes in regulation and tariffs may lead to issues with vehicles supply or increases in prices. Whilst the Group does not make significant sales or purchases in currencies other than GBP the prices of the vehicles and parts purchased from the NSCs may also be impacted by exchange rate changes brought about by diverging economic performance and fiscal policy between the UK and Eurozone. The Group continues to maintain close relationships with manufacturers and to monitor manufacturers’ preparations for a new trading relationship from 1 January 2021.

The Group is not directly reliant upon labour from EU countries, however the performance of the UK labour market due to wider changes in freedom of movement of people between the UK and the EU many impact upon the Group’s ability to attract and retain staff.

Given the complexity of the economic environment and the evolving negotiations the overall impact of this risk is difficult to determine, as the position becomes clearer the Directors will take appropriate actions when necessary.

COVID-19

The Directors draw specific attention to the pervasive impacts of the ongoing COVID-19 pandemic. This represents a risk influenced by circumstances and events that have evolved subsequent to the issue of the 2019 Annual Report and Accounts. The ongoing COVID-19 pandemic has caused major disruption to businesses across the world, including the Group. As health and government authorities’ responses to the pandemic continue to evolve and the full macro-economic impacts of the pandemic continue to unfold, the duration and extent of the disruption are in part unknown at this time. The Group continues to follow all government guidance to ensure a Covid secure operating environment for all customers and colleagues.

A regular assessment of the personal and commercial impacts and mitigating actions required continues to be carried out at both a Group and local geographical level by the Directors and Board. Communications and guidance on revised policies and procedures implemented in response to the impacts of COVID-19 are being regularly issued internally to support colleagues and customers. Furthermore, the Directors have taken appropriate cost mitigation actions and the Group is benefiting from the support provided by the UK Government, by vehicle manufacturers, by supply chain partners and by the Group’s funding facility providers. Further details of mitigating actions taken are included in the Going Concern section below.

As the public health and economic situations continue to develop and the UK Government and the health authorities adapt their responses to the pandemic, the Group will continue to closely monitor, assess and take mitigating actions in response to the evolving risks and uncertainties resulting from the COVID-19 pandemic. These risks and uncertainties are expected to remain in existence for the foreseeable future and could continue to have a material impact on the Group’s performance over the remaining six months of the financial year. Consequently, the Group’s financial position and performance could differ materially from expected and historic results.

Going concern

The consolidated financial statements are prepared on a going concern basis. After making appropriate enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and for at least one year from the date that these consolidated financial statements are signed. For these reasons they continue to adopt the going concern basis in preparing the consolidated financial statements. Accordingly, these financial statements do not include any adjustments to the carrying amount or classification of assets and liabilities that would result if the Group were unable to continue as a going concern.



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Going concern (continued)

The Directors have considered the future prospects and performance of the Group including the impact of no trade deal with the EU being in place at the end of the transition period on 1 January 2021, the on-going COVID-19 pandemic, available UK Government support, the Group’s business plans, impact of acquisitions, future cash flows and availability of core and auxiliary financing facilities. Details of the assessment conducted by the Directors is set out below.

Short-term mitigating actions

As set out in the Operating Review on page 5 and the Financial Review on page 10 the COVID-19 pandemic has had a material impact on the Group’s profitability and cash flows for the six months ended 30 June 2020. In response to this situation the Group has taken and is continuing to take actions to conserve cash and mitigate losses, including:

• Cancelling dividend payments relating to full year 2019 and no interim dividend has been proposed

• Drawing on the applicable support measures announced by the UK Government, including in particular, the Coronavirus Job Retention Scheme, the Expanded Retail Discount 2020/21 for business rates and the deferral of VAT payments;

• Utilising the support measures put in place by vehicle manufacturers to support franchised dealers, including the extension of vehicle funding terms; and

• Cost mitigation actions including seeking revised terms with certain suppliers and, for the period the dealerships were closed, voluntary reductions in the salaries of the Board and other senior members of the team.

Banking facilities and funding position

At 30 June 2020 the Group had £120m of committed but undrawn banking facilities made available under a facility agreement (the “Previous Agreement”) due to expire in June 2021. On 29 July 2020 these facilities were extended for 2.5 years expiring in January 2023.

The Group has not made use of any borrowing under the Covid Corporate Financing Facility or Coronavirus Large Business Interruption Loan Scheme.

At 30 June 2020 the Group would have been in breach of the banking covenants under the Previous Agreement; in anticipation of the completion of the Extension Agreement the lenders agreed to waive the requirement for a covenant test as at 30 June 2020.

In addition to these banking facilities the Group has access to substantial vehicle inventory funding arrangements of which £398,575,000 was utilised at 30 June 2020.

Assessment of the Group’s financial position

During the six months covered by these consolidated financial statements the Group has experienced significant business disruption arising as a result of the global COVID-19 pandemic. In particular, the Group was required to close all of its dealership showrooms from 23 March 2020 to 1 June 2020, opening on the 26 May 2020 for click and collect only. During this period only a limited number of the Group’s aftersales facilities remained open to provide aftersales services to the emergency services, transport companies and other key workers and vulnerable people. Further details of the impacts are set out in the Operating Review on page 5 and the Financial Review on page 10.



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Going concern (continued)

Assessment of the Group’s financial position (continued)

The Directors have assessed the potential on-going impacts of the COVID-19 pandemic coupled with the wider risk of there not being a comprehensive trade deal at the end of the Brexit transition period, leading to economic disruption on the Group and have modelled scenarios as follows:

• A base case, including strong performance in the third quarter of 2020 fuelled by pent-up demand followed by a more challenging fourth quarter as the level of economic and social damage becomes apparent. Under this scenario in 2021, performance improves in line with the latest market forecasts and the impact of acquisitions and closures. This is followed by growth from 2022 onwards.

• A downside case, where the market declines by a further 5% in 2021 compared to the base case, by a further 5% in 2022 due to ongoing economic uncertainty, and the Group is unable to take any substantial mitigating actions.

• A mitigated downside case, where the market declines as described in the downside case however the Group is able to deliver mitigating actions including 5% headcount reductions in 2021 and a further 5% in 2022 as well as a 50% reduction in capital expenditure.

• A short-term shock case, where there are repeated local lockdowns such that 50% of the Group’s dealership network is impacted for three months. The severe operational impact of this scenario would necessitate more substantial mitigation action such as overhead reductions of 10% and capital expenditure reductions of 50% in 2021.

Under the base case, downside case, and mitigated downside case the Group is forecast to be able to continue to operate within the bank facility limits and to comply with the banking covenants set out in the Extension Agreement. Under the short-term shock case the Group would have sufficient finance facilities available to it but would breach the banking covenants set out in the Extension Agreement; however, discussions with the Group’s lenders indicate that in this scenario a waiver of the covenant requirements would be possible.

The Directors have therefore concluded that Company is able to continue as a going concern through to August 2021.

2. Accounting policies

Full details of the impact of adoption of amendments to existing standards are set out in Note 3 ‘Changes in Accounting Policies and Disclosures’.

Except where disclosed below, the accounting policies applied are consistent with those set out in the Marshall Motor Holdings plc 2019 Annual Report and Accounts dated 9 March 2020. These accounting policies are expected to apply for the year ending 31 December 2020.

Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. All such grants relate to expense items. The grant is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed.

The grant income is disclosed in Net Operating Expenses in the Condensed Consolidated Statement of Comprehensive Income.



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2. Accounting policies (continued)

Significant accounting judgements, estimates and assumptions

Except where stated below, the critical accounting judgements, estimates and assumptions applied are consistent with those set out in the Marshall Motor Holdings plc 2019 Annual Report and Accounts dated 9 March 2020.

There have been no material revisions to either the nature or amount of estimates reported in prior periods. However, the ongoing impacts of the global COVID-19 pandemic have required both significant new critical accounting judgements and estimates to be made as well as immaterial changes to certain existing critical accounting judgements and estimates.

Due to the nationwide, macro-economic implications of the COVID-19 pandemic, forward-looking estimations of potential default rates have been revised when estimating expected credit losses attributable to trade receivable balances. The result of these more prudent estimates has not had a material impact on the interim condensed consolidated financial statements.

The following new critical accounting judgements and key sources of estimation uncertainty have arisen:

• Estimation of the net realisable value of vehicle inventory due to distortions in market prices as a result of the impacts of the COVID-19 pandemic on both vehicle supply and changing patterns of customer demand;

• Classification of items of income and expenditure associated directly with the impact of the COVID-19 pandemic as “Non-underlying items”;

These new and revised critical accounting judgements, estimates and assumptions are expected to continue to be applicable for the year ending 31 December 2020.

3. Changes in accounting policies and disclosures

New standards, amendments and interpretations adopted by the Group

The following amendments to existing standards became effective on 1 January 2020 and have been adopted for the first time in the interim condensed consolidated financial statements for the six months ended 30 June 2020.

• IAS 1 Presentation of Financial Statements

• IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

• IFRS 3 Business Combinations

These have been assessed as having no financial or disclosure impact on the numbers presented.

Three other amendments to existing standards apply for the first time with effect from 1 January 2020; however, they are not applicable to the interim condensed consolidated financial statements of the Group.



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4. Segmental information

IFRS 8 Operating Segments requires operating segments to be consistent with the internal management reporting provided to the Chief Operating Decision Maker who is responsible for allocating resources and assessing the performance of the operating segments. The Group considers the Chief Executive Officer to be the Chief Operating Decision Maker.

The Group has identified its key product and service lines as being its operating segments because both performance and strategic decisions are analysed at this level. The IFRS 8 aggregation criteria have been met as a result of the Group’s key product and service lines sharing common characteristics such as; similar types of customer for the products and services, similar nature of the product and service offerings, similar methods used to distribute the products and provide the services and similar regulatory and economic environment. As a result of these criteria being satisfied, the Group’s operating segments constitute one reportable segment (retail) and all segmental information has been disclosed as such. 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.

The Group has concluded that rental income arising from investment properties does not meet the quantitative thresholds required to constitute a reportable segment as defined in IFRS 8. Due to the non-material nature of these amounts, they are combined with the retail segment rather than being disclosed separately. As a result, all of the Group’s activities are disclosed within the one reportable segment – the retail segment.

Geographical information

Revenue earned from sales is disclosed by origin and is not materially different from revenue by destination. All of the Group’s revenue is generated in the United Kingdom.

Information about reportable segment

All segment revenue, (loss)/profit before taxation, assets and liabilities are attributable to the principal activity of the Group being the provision of car and commercial vehicle sales, vehicle service and other related services.

The following tables show the disaggregation of revenue by major product/service lines for continuing operations:

Revenue Gross Profit For the half year ended 30 June 2020 (unaudited) £’000 mix* £’000 mix*

New vehicles 417,423 45.7% 25,224 26.6%

Used vehicles 395,581 43.3% 24,298 25.7%

Aftersales 100,252 11.0% 45,159 47.7%

Internal/other (17,924) – 499 –

Total 895,332 100.0% 95,180 100.0%

Revenue Gross Profit For the half year ended 30 June 2019 (unaudited) £’000 mix* £’000 mix*

New vehicles 569,120 47.1% 43,590 32.3%

Used vehicles 509,599 42.2% 33,494 24.9%

Aftersales 129,518 10.7% 57,762 42.8%

Internal/other (24,970) – 181 –

Total 1,183,267 100.0% 135,027 100.0%

*Mix calculation excludes internal/other sales.



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5. (Loss)/profit before taxation

(Loss)/profit before taxation is arrived at after charging/(crediting):

Six months Six months ended ended

30 June 2020 30 June 2019 (unaudited) (unaudited)

£’000 £’000

Depreciation on property, plant and equipment (note 13) 5,346 5,118

Amortisation of other intangibles 236 221

Profit on disposal of assets classified as held for sale (note 6) (1,563) –

Profit on disposal of property plant and equipment – (6)

Depreciation of right-of-use assets 5,525 4,525

Profit on disposal and remeasurement of right-of-use assets and lease liabilities – (635)

Impairment loss on right-of-use assets 14 112

Income received from subleasing right-of-use assets (93) (78)

6. Non-underlying items



£’000 £’000

Acquisition costs – (159)

Net release/recognition of restructuring costs (518) (137)

Profit on disposal of assets classified as held for sale 1,563 –

Items directly attributable to the COVID-19 pandemic (2,831) –

Other – (104)

Non-underlying items (1,786) (400)

Net release/recognition of restructuring costs

Restructuring costs are a continuation of items disclosed in previous periods and relate to the closure of two of the Group’s franchised dealerships. Restructuring costs also include £151,000 in respect of the integration of dealerships acquired in December 2019.

Profit on disposal of assets classified as held for sale

In June 2020 the Group sold the freehold property classified as held for sale for a profit of £1,563,000.

Items directly attributable to the COVID-19 pandemic

Such directly attributable items include the carry cost of furloughed employees totalling £18,226,000, grant income received under the Coronavirus Job Retention Scheme of £16,438,000 and £1,043,000 of personal protective equipment and other associated costs incurred to establish dealership locations as Covid-secure operating environments for all colleagues and customers.

Other non-underlying items

All other expenses disclosed in non-underlying items are a continuation of items disclosed in previous periods. More information about the non-underlying items in the year ended 31 December 2019 is available in the 2019 Annual Report and Accounts available at www.mmhplc.com.



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7. Net finance costs



£’000 £’000

Finance lease interest receivable (42) (30)

Stock financing charges and other interest 3,195 3,015

Interest payable on lease liabilities 1,582 1,547

Interest payable on bank borrowings 609 467

Net finance costs 5,344 4,999

8. Taxation

The tax charge for the six months ended 30 June 2020 is recognised based on best estimates of the average annual effective tax rate expected for the full financial year, adjusted for the tax impact of any discrete items arising in the period. The estimated average annual effective tax rate for the six months to 30 June 2020 is 1.6% (six months ended 30 June 2019: 22.6%).

Due to the adverse market conditions resulting from the COVID-19 pandemic, the Group has exceptionally reported a taxable loss during the period. The resulting tax credit calculated at the 19% standard rate is fully eroded by a net add-back of both estimated non-qualifying depreciation and estimated non-deductible legal and professional fees. The value of these items is consistent with previous periods; however, because they do not vary in proportion to fluctuations in (loss)/profit before tax, these items have a distortive impact on the effective tax rate.

The underlying effective tax rate for the six months ended 30 June 2020 reflects the average annual effective tax rate expected for the full financial year and is 1.6% (six months ended 30 June 2019: 22.6%).

The total reported effective tax rate for the six months ended 30 June 2020 is -15.0% (six months ended 30 June 2019: 22.8%). Whilst the Group made a taxable loss for the period, a deferred taxation charge of £2,373,000 has arisen due to the change in the rate at which deferred taxation is recognised. This has been presented in non-underlying items as the charge represents a one-off legislative change in the period.

The Finance Act 2016 reduced the corporation tax rate to 17% with effect from 1 April 2020. In the Budget of 11 March 2020, the Chancellor of the Exchequer announced that the planned rate reduction to 17% would no longer be taking effect. The changes announced during the Budget of 11 March 2020 were substantively enacted as at the balance sheet date, therefore, all opening deferred taxation balances have been remeasured at 19%.



27


9. Earnings per share

Basic and diluted earnings per share are calculated by dividing the earnings attributed to equity shareholders by the weighted average number of ordinary shares during the year and the diluted weighted average number of ordinary shares in issue in the year after taking account of the dilutive impact of shares under option of 2,692,304 (June 2019: 2,775,357, December 2019: 2,002,304).

Underlying earnings per share are based on basic earnings per share adjusted for the impact of non-underlying items.



£’000 £’000

Underlying net (loss)/profit attributable to equity holders of the parent (8,792) 11,724

Non-underlying items after tax (3,544) (328)

Net (loss)/profit attributable to equity holders of the parent (12,336) 11,396


30 June 2020 30 June 2019 Thousands Thousands

Number of shares

Weighted average number of ordinary shares for the purpose of basic EPS 78,232 78,018

Effect of dilutive potential ordinary shares: share options* – 1,822

Weighted average number of ordinary shares for the purpose of diluted EPS 78,232 79,840


30 June 2020 30 June 2019 Pence Pence

Basic underlying earnings per share (11.2) 15.0

Basic earnings per share (15.8) 14.6

Diluted underlying earnings per share (11.2) 14.7

Diluted earnings per share (15.8) 14.3

*The effect of share options are anti-dilutive due to the Group recognising a net loss for the period, so are excluded from the diluted earnings per share calculation.

10. Dividends

In light of the circumstances resulting from the ongoing COVID-19 pandemic, the previously proposed final dividend of 5.69p per share for the year ended 31 December 2019 has been cancelled. The Board is mindful of the importance of dividends to its shareholders and intends to resume the payment of dividends as soon as conditions allow.

An interim dividend of £2,228,000 in respect of the year ended 31 December 2019 was paid in September 2019. This represented a payment of 2.85p per ordinary share in issue at that time.



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11. Share-based payments

During the period there have been no new share awards granted, no existing awards have vested and no options have been exercised.

In April 2019 the second tranche of the IPO Performance Awards vested and became exercisable. On 2 April 2019, all option holders exercised these options. As such, 306,795 ordinary shares of 64p were issued. A portion of the share options exercised were settled in cash rather than being equity-settled. The total value of cash-settled transactions was £708,000.

12. Goodwill and other intangible assets

Six months Six months Year ended ended ended 31 December

30 June 2020 30 June 2019 2019 (unaudited) (unaudited) (audited)

£'000 £'000 £'000

Net book value

At the beginning of the period 119,260 112,177 112,177

Net additions 184 3,476 7,461

Net amortisation charge for the period (236) (189) (378)

At the end of the period 119,208 115,464 119,260

The carrying value of goodwill and other intangible assets principally consists of goodwill and franchise agreements of £118.0m (June 2019: £114.6m, December 2019: £118.0m).

a) Acquisitions – prior period

On 31 January 2019 the Group acquired the trade and assets of two ŠKODA dealerships located in Leicester and Nottingham. A month later, on 28 February 2019 the Group acquired the trade and assets of four ŠKODA dealerships in Northampton, Bedford, Letchworth and Harlow. These acquisitions were part of the Group’s stated strategy to grow with existing brand partners in new geographic territories by adding further sites in excellent locations that are contiguous to the Group’s existing ŠKODA sites.

The fair value of the net assets at the date of the acquisitions are as set out below. The goodwill arising on acquisition is attributed to the expected synergies and benefits associated with the increased brand representation which has resulted in the Group becoming the UK’s largest ŠKODA retailer.

Fair value of net assets acquired

£’000

Intangible assets 1,985

Property, plant and equipment 715

Right-of-use assets 4,481

Inventories 2,483

Trade and other payables (438)

Lease liabilities (4,331)

Provisions (552)

Net assets acquired 4,343

Goodwill 1,238

Total cash consideration 5,581

The results of the acquired ŠKODA dealerships were consolidated into the Group’s results from the relevant date of acquisition. For the period from acquisition to 30 June 2019, the revenues and the loss before tax generated by these dealerships were immaterial in the context of the Group’s revenues and profit before tax.



29


12. Goodwill and other intangible assets (continued)

a) Acquisitions – prior period (continued)

If the acquisition had taken effect at the beginning of the reporting period in which the acquisition occurred (1 January 2019), on a pro forma basis, the change in revenue and profit before tax of the combined Group for the six months ended 30 June 2019 would have been immaterial in the context of the Group.

Transaction costs arising on acquisitions in 2019 totalled £159,000. These costs have been recognised in net operating expenses in the Consolidated Statement of Comprehensive Income and are part of operating cash flows in the Consolidated Cash Flow Statement.

Measurement period adjustments

Subsequent to the issue of the Group’s Interim Report and Accounts for the six months ended 30 June 2019, within the measurement period, the purchase price allocation in relation to the acquisition of these six ŠKODA dealerships was finalised. In accordance with IFRS 3 Business Combinations, the measurement period adjustment has been reflected in these financial statements as if the final purchase price allocation had been completed at the acquisition date. The adjustment consisted of a reclassification of £1,985,000 from goodwill to franchise agreements.

More information about the acquisitions made in the second half of the year ended 31 December 2019 is available in the 2019 Annual Report and Accounts available at www.mmhplc.com.

b) Impairment testing

For the purpose of impairment testing, goodwill and franchise agreements are allocated to a cash generating unit (“CGU”), or to the smallest group of CGUs where it is not possible to apportion the goodwill or intangible assets at the individual CGU level. Each CGU or group of CGUs to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for management purposes. Goodwill and intangible assets arising on business combinations are allocated to CGUs by determining which CGU is expected to benefit from the synergies of the business combination.

The Group’s CGUs are groups of dealerships connected by manufacturer brand. The allocation of goodwill and indefinite lived intangible assets to the CGU groups is as follows:

Franchise Goodwill Agreements

£’000 £’000

Volkswagen Group* 17,042 35,247

BMW/MINI 1,461 8,345

Jaguar/Land Rover 8,003 14,358

Mercedes-Benz/Smart 11,182 19,201

Other 3,164 22

Total 40,852 77,173

*Volkswagen Group includes Volkswagen, Audi, ŠKODA and SEAT brands.

Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill may not be recoverable and a potential impairment may be required. Impairment reviews were performed for all groups of CGUs for the year ended 31 December 2019.

The COVID-19 pandemic and the associated restrictions implemented by the UK Government on 23 March 2020 are considered an impairment trigger and as a result all groups of CGUs have been tested for impairment at 30 June 2020.

Valuation basis

The recoverable amount of the Group’s CGUs is determined by reference to their value-in-use to perpetuity calculated using a discounted cash flow approach, with a pre-tax discount rate applied to the projected, risk-adjusted pre-tax cash flows and terminal value. Where higher, the fair value of groups of CGUs, less costs of disposal, is taken as the recoverable amount.



30



b) Impairment testing (continued)

Period of specific projected cash flows

The value-in-use of each CGU is calculated using cash flow projections for a five-year period; from 1 July 2020 to 30 June 2025. These projections are based on the Board approved budget for the year ended 31 December 2020 forming the basis for the Group’s five-year strategic plan.

As described under “Going Concern” in Note 1 to the consolidated financial statements five-year strategic plan base case (the “Base Case”) has been updated to reflect the expected impact of the COVID-19 pandemic. This update anticipates strong performance in the third quarter of 2020 fuelled by pent-up demand followed by a more challenging fourth quarter as the level of economic and social damage becomes apparent. Under this scenario in 2021, performance improves in line with the latest market forecasts and the impact of acquisitions and closures, followed by growth from 2022 onwards.

The key assumptions in the Base Case on which the cash flow projections are based relate to expectations of sales volumes and margins and expectations around changes in the operating cost base. The assumptions made are based on past experience, adjusted for expected changes, and external sources of information. The cash flows include ongoing capital expenditure required to maintain the Group’s dealership network, but exclude any growth capital expenditure projects to which the Group was not committed at the reporting date. When applying the assumptions used in the revised forecasts, management has assumed that the persuasive nature of the events surrounding the COVID-19 pandemic will have a similar impact to reduce performance across all of the Group’s franchises.

Discount rate

The cash flow projections have been discounted using a rate derived from the Group’s pre-tax weighted average cost of capital adjusted for industry and market risk. The discount rate used is 8.0% (2019: 8.0%). For the purposes of the interim impairment testing, the discount rate used as at 31 December 2019 has continued to be used on the basis that current economic circumstances are having a distortive impact on certain inputs into the rate calculation. These circumstances and impacts are not anticipated to continue for the whole forecast period.

Terminal growth rate

The cash flows after the forecast period are extrapolated into the future over the useful economic life of the group of CGUs using a steady or declining growth rate that is consistent with that of the product and industry. These cash flows form the basis of what is referred to as the terminal value. The growth rate to perpetuity beyond the initial budgeted cash flows applied in the value-in-use calculations to arrive at a terminal value is 2% (2019: 2%). Terminal growth rates are based on management’s estimate of future long-term average growth rates.

Conclusion

At 30 June 2020, the Group recorded impairment charges of £nil (30 June 2019: £nil).

Under the Base Case the Group’s CGUs all have significant headroom in respect of the carrying value of goodwill and intangible assets with the exception of the BMW/MINI CGU, to which goodwill of £1,461,000 and indefinite life franchise agreement intangible assets of £8,345,000 are assigned.

The Group’s BMW/MINI franchises have faced a number of challenges in the last two years brought about largely due to brand challenges around oversupply of vehicles and vehicle recalls. As a result, BMW was impaired by £8,388,000 during the year ended 31 December 2018.

During the latter part of 2019 the Directors identified various internal and external changes which would improve the performance of the BMW franchise. Prior to the enforced closure of the business in March 2020, the performance of the BMW franchise had shown significant improvement in both order intake and unit sales per week.



31



b) Impairment testing (continued)

Conclusion (continued)

The approved forecast and therefore the value-in-use of the CGU is sensitive to changes in the delivery of the actions and initiatives. The impact of the COVID-19 pandemic has reduced the headroom and any further delay in achieving these improvements during 2020 will put pressure on the carrying value of the associated goodwill and intangible assets and consequently an impairment trigger event is likely to be realised.

An underperformance resulting in the EBITDA generated by the CGU being 5% below the forecast would lead to a non-cash impairment of £1.0m. An overperformance to the forecast of 5% would increase the headroom by £1.8m.

Sensitivity to changes in key assumptions

Impairment testing is dependent on estimates and judgements, particularly as they relate to the forecasting of future cash flows, the discount rates selected and expected long-term growth rates.

The Group has performed a sensitivity analysis on the impairment tests under the Base Case using four scenarios; firstly, where the discount rate decreases by 100 basis points, secondly, where the discount rate increases by 100 basis points, thirdly, where the terminal value growth rate decreases by 50 basis points and fourthly, where the terminal value growth rate increases by 50 basis points. The first and fourth scenarios would result in no recognition of an impairment against any CGU. The second scenario would result in an impairment of £3,400,000 of the BMW/MINI CGU. The third scenario would result in an impairment of £1,000,000 of the BMW/MINI CGU.

In order to assess the possibility of future impairments, the Group has performed additional sensitivity analysis, using the forecasts prepared to support the Directors’ consideration of the going concern basis of preparation.

• A downside case, where the market declines by 5% in 2021 compared to 2019, by a further 5% in 2022 due to ongoing economic uncertainty, and the Group is unable to take any substantial mitigating actions.

• A mitigated downside case, where the market declines as described in the downside case however the Group is able to deliver mitigating actions including 5% headcount reductions in 2021 and a further 5% in 2022 as well as a 50% reduction in capital expenditure.

• A short-term shock case, where there are repeated local lockdowns such that 50% of the Group’s dealership network is impacted for three months. The severe operational impact of this scenario would necessitate more substantial mitigation action such as overhead reductions of 10% and capital expenditure reductions of 50% in 2021.

Firstly, for the downside case an impairment of £2,400,000 would be recognised against the BMW/MINI CGU. Secondly, for the mitigated downside case, an impairment of £1,100,000 would be recognised against the BMW/MINI CGU. Thirdly, for the short-term shock case no impairment would be recognised as while this case envisages major operational disruption the Directors are able to take mitigating actions to reduce costs and cash expenditure.



32


13. Property, plant and equipment

Freehold land and Leasehold Plant and Assets under

buildings improvements equipment construction Total £’000 £’000 £’000 £’000 £’000

For the half year ended 30 June 2020

(unaudited)

Cost

At 1 January 2020 135,621 26,969 45,167 1,685 209,442

Additions at cost – 239 1,332 2,292 3,863

Disposals – (679) (1,547) – (2,226)

Transfers 8 1,901 362 (2,271) –

At 30 June 2020 135,629 28,430 45,314 1,706 211,079

Accumulated depreciation

At 1 January 2020 12,443 8,621 29,085 – 50,149

Charge for the period 982 1,215 3,149 – 5,346

Disposals – (652) (1,429) – (2,081)

At 30 June 2020 13,425 9,184 30,805 – 53,414

Net book value

At 30 June 2020 122,204 19,246 14,509 1,706 157,665

At 30 June 2020, the Group had capital commitments totalling £5.0m relating to ongoing construction projects.



33


13. Property, plant and equipment (continued)



For the half year ended 30 June 2019

(unaudited)

Cost

At 1 January 2019 118,781 22,040 39,909 9,501 190,231

Additions at cost 2,505 267 2,315 3,009 8,096

Additions on acquisition – 397 318 – 715

Disposals – (227) (457) – (684)

Transfers 9,840 193 1,239 (11,272) –

Transfers to prepayments – (200) – – (200)

At 30 June 2019 131,126 22,470 43,324 1,238 198,158


At 1 January 2019 10,596 6,166 25,310 – 42,072

Charge for the period 898 996 3,224 – 5,118

Disposals – (3) (214) – (217)

Transfers to prepayments – (18) – – (18)

At 30 June 2019 11,494 7,141 28,320 – 46,955

Net book value

At 30 June 2019 119,632 15,329 15,004 1,238 151,203

At 30 June 2019, the Group had capital commitments totalling £4.5m relating to ongoing construction projects.


13. Property, plant and equipment (continued)



For the half year ended 31 December 2019

(audited)

Cost

At 1 January 2019 118,781 22,040 39,909 9,501 190,231

Additions at cost 4,937 418 4,519 8,827 18,701

Additions on acquisition 1,991 734 1,863 – 4,588

Disposals – (595) (3,042) – (3,637)

Transfers to investment property (441) – – – (441)

Transfers 10,353 4,372 1,918 (16,643) –

At 31 December 2019 135,621 26,969 45,167 1,685 209,442


At 1 January 2019 10,596 6,166 25,310 – 42,072

Charge for the year 1,850 2,137 6,230 – 10,217

Disposals – (184) (2,661) – (2,845)

Impairment – 502 206 – 708

Transfers to investment property (3) – – – (3)

At 31 December 2019 12,443 8,621 29,085 – 50,149

Net book value

At 31 December 2019 123,178 18,348 16,082 1,685 159,293

At 31 December 2019, the Group had capital commitments totalling £6.9m relating to ongoing construction projects.

More information about the transfers to investment property and the impairment are available in the consolidated financial statements for the year ended 31 December 2019 which are available at www.mmhplc.com.


34



14. Fair value measurement

The carrying amounts and fair values of the Group’s financial assets and financial liabilities are as below. The Group considers that the carrying amount of the following financial assets and financial liabilities are a reasonable approximation of their fair value: trade receivables, trade payables, bank loans and cash and cash equivalents. Therefore, these assets are not disclosed below.

All fair values shown in the table below are measured using observable inputs (Level 2). The fair value of mortgages is determined by reference to future contractual cash flows discounted using the prevailing market interest rates for facilities with similar characteristics.

Six months ended Six months ended Year ended 30 June 2020 30 June 2019 31 December 2019

(unaudited) (unaudited) (audited) Carrying Carrying Carrying

amount Fair value amount Fair value amount Fair value £'000 £'000 £'000 £'000 £'000 £'000

Financial liabilities

Mortgages 4,703 3,742 5,505 4,282 5,024 3,951

There have been no transfers between levels in the fair value hierarchy during either 2020 or 2019.

15. Events after the reporting period

On 10 July 2020, the Group’s wholly-owned subsidiary, Marshall Motor Group Limited, acquired the trade and assets of a Volkswagen dealership in Aylesbury for cash consideration of £2,945,000. Acquisition of this dealership brought to a successful conclusion the strategic acquisition of eight Volkswagen Group UK franchises announced in December 2019. This acquisition is part of the Group’s stated strategy to grow with existing brand partners in new geographic territories by adding further sites in excellent locations.

No related acquisition costs have been recognised during the period.

The acquisition qualifies as a business combination and will be accounted for using the acquisition method of accounting. As a result of the limited time since the acquisition date, the initial accounting for the business combination is incomplete at the time of this filing. Therefore, the Group is unable to provide the amounts recognised as at the acquisition date for the major classes of assets acquired, liabilities assumed and goodwill. Likewise, the Company is unable to provide pro forma revenues and earnings of the combined business. This information will be disclosed in the Group’s Annual Report and Accounts for the year ending 31 December 2020.


35




36

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report

for the six months ended 30 June 2020 which comprises the Condensed Consolidated Statement of Comprehensive Income,

the Condensed Consolidated Balance Sheet, the Condensed Consolidated Statement of Changes in Equity, and the Condensed

Consolidated Cash Flow Statement, and the related notes.

We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent

misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors’ responsibilities

The interim report, including the financial information contained therein, is the responsibility of and has been approved by the

directors. The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange

for companies trading securities on AIM which require that the half-yearly report be presented and prepared in a form consistent

with that which will be adopted in the Company's annual accounts having regard to the accounting standards applicable to such

annual accounts.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly

financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, ‘‘Review

of Interim Financial Information Performed by the Independent Auditor of the Entity’’, issued by the Financial Reporting Council

for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons

responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially

less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not

enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.

Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements

in the half-yearly financial report for the six months ended 30 June 2020 is not prepared, in all material respects, in accordance

with the rules of the London Stock Exchange for companies trading securities on AIM.

Use of our report

Our report has been prepared in accordance with the terms of our engagement to assist the Company in meeting the requirements

of the rules of the London Stock Exchange for companies trading securities on AIM and for no other purpose. No person is

entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of

our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not

accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all

such liability

BDO LLP Chartered Accountants

Southampton

17 August 2020

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

Independent Review Report to Marshall Motor Holdings Plc



37

Appendix – Alternative Performance Measures (APMs)

The Group presents various APMs as the Directors believe that these are useful for users of the financial statements in helping

to provide a balanced view of, and relevant information on, the Group’s financial performance. The APMs are measures which

disclose the adjusted performance of the Group excluding specific items which are regarded as non-recurring. See Note 6 ‘Non-

Underlying Items’ for full details of the nature of items excluded from non-underlying performance measures.

The following table shows the reconciliation between the Group’s performance as reported in accordance with International

Financial Reporting Standards (IFRS) and the Group’s underlying performance and like-for-like results.

2020 2019 Underlying operating (loss)/profit £'000 £'000

Total continuing operating (loss)/profit as reported (5,381) 19,755

Impact of non-underlying items:

Acquisition costs – 159

Net release/recognition of restructuring costs 518 137

Profit on disposal of assets classified as held for sale (1,563) –

Items directly attributable to the COVID-19 pandemic 2,831 –

Other – 104

1,786 400

Continuing underlying operating (loss)/profit (3,595) 20,155

2020 2019 Like-for-like revenue £'000 £'000

Total continuing revenue as reported 895,332 1,183,267

Impact of non like-for-like activities:

New dealerships acquired or opened in the last 12 months (96,932) (22,704)

Dealerships closed in the last 12 months – (4,386)

(96,932) (27,090)

Continuing like-for-like revenue 798,400 1,156,177

2020 2019 Like-for-like gross profit £'000 £'000

Total continuing gross profit as reported 95,180 135,027

Impact of non like-for-like activities:

New dealerships acquired or opened in the last 12 months (12,054) (2,548)

Dealerships closed in the last 12 months (103) (513)

(12,157) (3,061)

Continuing like-for-like gross profit 83,023 131,966

2020 2019 Adjusted net debt £'000 £'000

Cash and cash equivalents 32,711 11,938

Loans and borrowings (5,344) (6,146)

Lease liabilities (104,849) (87,984)

Total net debt as reported (77,482) (82,192)

Less: Lease liabilities 104,849 87,984

Adjusted net cash 27,367 5,792



38

Company Information

Registered Office: Airport House

The Airport

Cambridge

CB5 8RY

Company websites: www.mmhplc.com

www.marshall.co.uk

Nominated Adviser and Broker: Investec Bank plc

30 Gresham Street London EC2V 7QP

Auditor: BDO LLP

Arcadia House

Maritime Walk – Ocean Village

Southampton

SO14 3TL

Joint Bankers: Barclays Bank plc

1 Churchill Place London E14 5HP

HSBC Bank plc

8 Canada Square London E145HQ

Legal Advisers to the Company: Dentons UKMEA LLP

One Fleet Place London EC4M 7WS

Registrar: Link Market Services Limited

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

Perivan 259395




People are at the heart of our success

62Workshops stayed open to

provide essential services to

key workers during lockdown

Online HUB introduced to

keep colleagues updated

and entertained

Regular social media posts

to keep customers updated

Twice weekly colleague video

updates from senior team


259395 MM Interim Cover Spread.qxp 18/08/2020 10:32 Page 2



Airport House, The Airport, Cambridge, CB5 8RY

www.mmhplc.com

© 2020 Marshall Motor Holdings plc

Interim Report & Accounts 2020 Six months ended 30 June

259395 MM Interim Cover Spread.qxp 18/08/2020 10:32 Page 1

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