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Marshall Leasing sees profits soar
Date: 18 August 2015 | Author: Tristan Young
Marshall Leasing has seen a 40.9% hike in profitability in the first six months of this year on a rise in fleet numbers of 1.7% to 5897 cars.
The leasing arm of Marshall Motor Holdings saw a half-year pre-tax profit of £2.5 million, according to the group's stock market interim results.
The increase in profitability is in part, due to a number of disposals being deferred at the end of last year to take advantage of a stronger used car market in January and February 2015.
Commenting on the residual outlook and its impact on the leasing business, the group's chief financial officer Mark Raban, said: "The used car market has been robust in the first half of the year and the type of cars the leasing business disposes of are, typically, one-owner three year old cars and demand for these is very strong.
"Plus, we do run our leasing company in a very conservative way when it comes to setting RVs and as such, even through the recession we've never taken a loss."
Marshall's stock market statement for the leasing arm added: "The client base of the segment remains well diversified and balanced with no single customer representing more than 9% of the fleet and the top 10 customers accounting for 43.0% of the fleet.
"The strategy of the leasing segment moving forward continues to remain focused on recruiting and retaining clients through its service-driven offering rather than attempting to compete with larger competitors solely on pricing
