Talk Morgan Forums Community The Malvern Arms MMC 2023 results

From Yahoo finance Other articles are available. I hope they hve a strong balance sheet .

Morgan Motor Company is based in Worcestershire.
The firm behind sports car maker Morgan Motor Company saw its pre-tax loss widen by more than £10m during its latest financial year as it was hit with supply chain issues and increased costs.

The Worcestershire-headquartered business has reported a pre-tax loss of £25.5m for 2023, after having posted a pre-tax loss of £15.5m for 2022.

However, newly-filed accounts with Companies House also show that the firm’s turnover increased from £41.7m to £48.9m over the same period.

Founded in 1909, Morgan Motor Company hand-builds sports cars at its factory in Malvern.

Since 2019, Morgan Motor Company has been majority owned by private equity firm, Investindustrial.

In the UK, the firm’s turnover dropped from £18.5m to £16.2m but jumped from £14.5m to £24.8m in Europe, according to the new accounts.

However, in the red of the world, its sales also fell back from £8.6m to £7.9m over the financial year.

The business said that its ‘strategic one-off costs’ fell from £1.5m to £600,607 in the year while its recall warranty provision was also cut from £2.1m to £895,870.

However, its stock impairment totalled £3.7m and it booked a £3.5m cost for development.

One-off costs and supply chain woes hit Morgan Motor Company
A statement signed off by the board said: “During the year, the group was affected by several key suppliers experiencing financial difficulties.

“To avoid production shortages, the group invested in its stock, made direct payments/control stock from its suppliers, provided resources to help suppliers’ manage their internal processes and re-sourced to more financially stable suppliers when relevant.

“This has negatively impacted cash reserves, margins and production efficiency during the year.

“However, the group has now made good progress in derisking its supply chain.

“During the year the group incurred strategic one-off costs related to the discontinuation of operations at Bicester Heritage, changes in management team, improvements in supply chain and non-recurring legal costs.

“The group also incurred exceptional warranty campaign costs related to several models.”

Funny old world…just when the CEO has departed!!

The Morgan Motor Company accounts have been filed on 17th October for 2023. The directors statement is an interesting read.

Just search for Companies House https://www.gov.uk/get-information-about-a-company

then enter Morgan Motor Company and the accounts are in the filings tab section.

What's also interesting is you normally only have 9 months from the end of the financial year in which to file your annual accounts without incurring a penalty, and these were apparently filed late if it is on 17th October as ascribed to them.

The balance sheet shows a tale. 10m taken off it.

There are a lot of what maybe one off impairment charges to the P&L, which may have no cashflow implications. It's still considered a going concern so it must have adequate future cash flows etc.

The number of vehicles has gone up from 584 to 690 in 2023

For personal reasons.....!

I'm not sure where Yahoo got the 2023 pre tax loss of £25.5m from, as the accounts show a pre tax loss of £10,989,786 most of which (£9,830,123) comes from exceptional costs covering

Strategic one off costs
COVID direct costs
One off financing costs
Recall warrantee provision
Stock impairment
Impairment of development costs
Warranty campaign costs
Supplier restructuring costs

In view of the fact that their cash reserves increased from £4,565,821 in 2022 to £8,391,676 in 2023 it looks to me like they are cleaning up the balance sheet and getting rid of all the dirty washing in one go.

I often wonder if and when a balance sheet is cleaned up, as to whether the Balance Sheet items impaired were potentially overstated in the past to improve prior years profits. Some times it's as simple as a change in policy or circumstances that leads to the impairment. You could speculate forever as to the cause or reasons why.

Set aside the semantics and juggling of spreadsheets for one moment, I for one think it nothing short of a miracle they are still a concern at all following on from the total debacle of the M3W followed closely by the CX major brake and cooling issues.

If it hadn't been for the Italian backers and bosses MMC would be no longer and that would have made me sad, so bravo to them as they appear to be navigating very choppy seas left by Charles and his cohorts

No vested interests just the way I see it quite clearly and I feel sorry for the recently departed CEO on personal grounds as you never know what folk are living with, I wish him all the best for the future.

p.s. If they build the EVA it will be a love affair and a balls out move.

Yes I really like the Midsummer, it demonstrated a brave new direction and customer base and there will be no returning to flat cappers transport tbh as the customer base simply is non existent tis the land of dreams boys that have long past.

Yahoo got the loss figure from the Group Accounts which are shown in 'Sports Cars (England) Holdings Ltd'

There is also 'Sports Cars (England) Acquisitions Ltd' which appears to carry loans and the interest charged on them but which hasn't filed yet for 2023.....