MCH delivered record results, largely due to an exceptional performance from Marshall Motor Holdings (MMH) and aided by very favourable industry trends, and despite the negative after-effects of the pandemic, including semiconductor shortages and inflationary pressures. The focus on shareholder value resulted in several disposals, not least the motor retail arm and other non-core activities. The proceeds will be used to clear debt, invest in growth, and return cash to shareholders. The addition of international customers within its Aerospace division continues, with recent successes including the US Marine Corps and the Indian Air Force. The wisdom of the strategy is more apparent following the announcement of the early retirement of the RAF’s C-130J fleet.
We have generated a sum-of-the-parts valuation from our model using conservative ratings and FY25 EBITDA expectations to determine a fair value / share. The implied equity value of £290m equates to 490p per NVPO share, a 10.4% premium to the last traded price.
