Marshall Motor Group saw record turnover and net profits for its 2010 year-end after the acquisitive family-owned group realised its ambition to further increase its business outside of its Cambridgeshire base.
Turnover for the year-ending 31 December was £600m, a 28.3 per cent increase on 2009 (£467m), while net profit increased 69 per cent to £9.43m from £5.59m.
Return on sales for the expanded group was 1.74 per cent and the return on capital employed of £16.8 per cent.
The group, rated number 10 in the Motor Trader Top 200, significantly grew its representation over the course of the year by adding 15 new sites, including the purchase of Pendragon’s five-strong north west Mercedes-Benz market area last October.
“We’ve had a fantastic year with like-for-like growth across the business and strong overall growth with acquisitions which have obviously strengthened the group. I’m pleased with our profitability and return on sales, which is ahead of our peers,” said Daksh Gupta, chief executive officer.
Talking to Motor Trader Gupta predicted the full year run rate, including all the acquisitions, will generate turnover in the region of £750m. Highlights in the results include a 14.2 per cent increate in new car sales from 10,166 to 11,602; a 16.3 per cent increase in used sales from 14,289 to 16,619; a 21 per cent increase in service net profit from £9.98m to £12.09m.
The group also said it had improved after-sales absorption from 65.8 per cent in 2009 to 77.35 per cent in 2010.
Gupta said all acquisitions since January 2009 had been cash generative from day one and had made profits in their first full years. He also conformed the group will continue its policy of growing its national representation through further acquisitions this year.
“We have a national focus and there are good opportunities out there. We are not going out there knocking on doors and never have done; people are coming to us because they’ve seen our success over the last two years. Q1 was quiet in terms of acquisition opportunities but it’s getting busier now,” he said.
Published in Motor Trader on Thursday, 9 June 2011