Quoted Cambridge company Marshall Motor Holdings is using its UK market leading position and substantial war chest to identify potential fresh acquisitions and swoop when the time is ripe.

CEO Daksh Gupta told Business Weekly the company has £150 million of liquidity, remains highly cash generative despite the backdrop of the coronavirus pandemic and believes it is well placed to add to its portfolio of prime dealerships.

The cash runway remains highly visible and prosperous through to 2023, staff are steadily returning from the virus lockdown and both demand and waiting lists are running hot.

When the company posted its unaudited interim results for the six months to June 30 on Tuesday the share price rose 3.20 per cent despite the lack of a dividend. 

Also, the London Stock Exchange chat wire where shareholders are never frightened to hold back, was unanimously positive about medium and long-term prospects for the business.

Gupta said that 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, MMH believed it was well placed to capitalise on value accretive growth opportunities.

“Acquisitions have got to  be right, not just strategically but they also have to make financial sense,” Gupta said. “Since I arrived we have bought and sold 161 businesses so we are getting the hang of it now. 

“The really encouraging factor from the latest results is that we continue to trade ahead of the market – we have been so time and time again – and we are sufficiently confident to state that we will turn the reported loss reported today into break-even.

“With so many car producers’ factories closed from the March lockdown, we have continued to use technology to show people used and new cars online and we have built substantial pent-up demand. We have continued to provide unparalleled customer support.”

For the record, H1 revenue was down to £859.3m from £1.183 billion in the first half of 2019 – purely because of COVID-19. The 2019 H1 profit of £14.8m turned to a £10.7m loss this time. The company’s net assets were barely eroded.

Gupta reports highly encouraging sales since June 1 and expects these to continue. “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 June 1, trading has been robust and our important Q3 order take is encouraging.

“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.”