Marshall Motor Holdings Plc (AIM:MMH) shares hit the accelerator pedal on Wednesday morning after the car seller significantly raised full-year expectations.
The group has already lifted guidance twice this year, most recently in June, and said that favourable conditions seen back then continued in July.
There remains a high level of uncertainty over the second half of 2021 and into 2022 given well-documented vehicle supply issues, an expected realignment of used vehicle values (the timing of which is uncertain) and the continuing impact of the COVID-19 pandemic, the group said.
“Given these uncertainties, there remains a range of possible outcomes for the year; however, the board now expects that continuing underlying profit before tax for 2021 will be not less than £40.0mln. This figure is after the commitment to repay all CJRS [coronavirus job retention scheme] and non-essential retail sector grants received for this financial year,” the group said.
Shares in Marshall Motor were up 9.8% at 235p.
UK stocks today #6 -
Marshall Motor - 'significant increase in its full year expectations for 2021...a market which has benefited from positive tailwinds since April...tailwinds continued in July and the Group now has initial visibility on the outlook for August and September' pic.twitter.com/fK7lIGOyfX
— Chris Bailey (@Financial_Orbit) August 4, 2021