Car dealership Marshall Motor (MMH:AIM) is strong in the face of slowing car sales with revenue accelerating 44% in the first six months of the year.
Shares are up 6.7% to 151p as the car retailer and leasing group reports revenue of £1.18bn in the six months to June 30, with pre-tax profit up 53.5% to £18.6m.
But acquisitions and expansion have driven some of the firm's growth. Like-for-like new car sales slipped 0.4% over the period, although used car sales climbed 5.8% on a like-for-like basis.
That bucks the nationwide trend, with the Society of Motor Manufacturers and Traders (SMMT) reporting that new vehicle registrations in July were 9.3% lower than a year ago.
TAKING COSTS OUT OF THE BUSINESS
Meanwhile, the business has reduced operating expenses to 9.7% of revenue, compared to 10.1% a year ago.
It says its acquisition of Ridgeway, which was bought in May 2016, was already contributing towards profits at the group. Marshall is also building new Audi and Jaguar Land Rover dealerships, which are scheduled to open later this year.
Shareholders are set for a dividend of 2.15p a share, up from 1.8p a year ago.
Marshall says that, with so much uncertainty around Brexit and the new car market forecast to decline, it remains cautious but ultimately its outlook for the year remains unchanged.
