Marshall Motors achieved records performances across its expanding operation in 2013 as the group completed its first five year plan which has transformed it from a small regional business to a national group with 66 sites.

Sales and profits were buoyed by a series of acquisitions, strong organic growth and an improving confidence in the car retail sector.

Records were achieved in terms of revenue, up 18.8% to £940m, and operating profit which increased by 75% to £11.8m. The return on capital employed increased to 18.3%, which Marshall claims is now the highest of any top 10 dealer group, while return on sales were 1.25%.

New car retail sales for the period grew 23.7%  to 30,000 and used sales rose 23.9% to 26,000 units.

CEO Daksh Gupta (pictured) said the 12 month trading period was the most important in the group’s history as it came at the end of his five year plan which has seen the group grow from a small regional business to a national group with 66 sites across 17 counties.

“We have now delivered all the results we said we would and are the second largest privately owned dealer group in the UK. We didn’t quite get to £1bn turnover but we did hit that in the rolling year to February,” he said.

Gupta attributed much of the success to growth achieved from the many businesses it has acquired citing the collective Mercedes-Benz and Volkswagen Group businesses which operate from 21 franchises and have turned a £2.5m loss in 2010 to a £2m profit in 2013.

“There is potential for further growth within the group; we’ll get profits in this part of the business up to over £5m.”

Marshall’s 2013 key highlights 

• Turnover up 18.8% to £940m
• On 25 February 2014 our rolling 12 month sales hit £1bn
• Operating profit up 75% to £11.8m
• Cash generation strong at £15.3m
• ROCE of 18.3% (the highest of the top 10 dealer)
• Operating Profit RoS of 1.25%
• EBITDA margin of 4.2%
• New car retail sales up 23.7%
• Used car sales up 23.9%
• Corporate sales up 32.8%
• Service Absorption up 1.6% to 64%
• Employee turnover at 27.2% despite growing 400% since 2008
• 91% participation rate in the “Great Place to Work” survey with a trust index score of 77% and 4 of the 5 metrics equal to the Top 25 Companies to work for in the UK

original Story Taken from Motor Trader News – http://www.motortrader.com/industry-news/marshall-hits-record-sales-profits/