The results for H1 were very impressive, with all businesses delivering an uplift in revenue and margins. The most spectacular was Motor Retail, performing at record levels, with guidance improving three times during the period. Although the Aerospace and Defence core performed ahead of last year, uncertainty over its main contract with the UK MoD, ongoing delays elsewhere and component price increases all muted the scale of the improvement. We believe the retirement of the RAF’s C-130’s has weighed on the share price, which currently sits at a modest premium to the shareholding in MMH, and a marked discount to shareholder’s funds. Our valuation model gives a sum-of-the-parts (SOTP) fair value of 611p per share.
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Recovery across the board in the first half
- Published:
14 Sep 2021 -
Author:
Andy Edmond | David O’Brien -
Pages:
20
The results for H1 were very impressive, with all businesses delivering an uplift in revenue and margins. The most spectacular was Motor Retail, performing at record levels, with guidance improving three times during the period. Although the Aerospace and Defence core performed ahead of last year, uncertainty over its main contract with the UK MoD, ongoing delays elsewhere and component price increases all muted the scale of the improvement. We believe the retirement of the RAF’s C-130’s has weighed on the share price, which currently sits at a modest premium to the shareholding in MMH, and a marked discount to shareholder’s funds. Our valuation model gives a sum-of-the-parts (SOTP) fair value of 611p per share.