Marshall Motor to repay £4m in pandemic relief, despite restrictions closing its doors
Car dealer Marshall Motor is already set to repay furlough cash and retail grants it received this year amid the pandemic, following strong vehicle demand.
The business said it would refund the £2.6m of furlough payments received so far this year, alongside the £1.4m of extra government relief, according to the Telegraph.
“After such significant support from the government it would be inappropriate not to do this as we benefit from tailwinds at the moment,” chief executive Daksh Gupta said.
Around £5m of business rates relief, which was given to all retailers, will not be repaid.
The car dealers shares were up 1.50 per cent this morning, sitting at 174p per share.
The announcement came ahead of the Marshall’s annual general meeting today which is expected to post a rosy outlook for the business.
Throughout the year, the car dealer has navigated pandemic restrictions which closed dealerships and the global chip shortage which has halted some vehicle supply chains.
“We have the opportunity to do the right thing even when we don’t have to and others aren’t,” the chief executive added.
“We want to reinstate our dividend as soon as possible and without acting this way it would be inappropriate.”
After the repayments, the business has its sights set on an underlying profit for this year of “not less than” the £22.1m achieved in 2019.