Talk Morgan Forums Community The Malvern Arms MMC 2023 results

Its always a case of how deep are your pockets, how the product fits into your portfolio, can you use the losses to offset taxation on profits earned elsewhere, who is backing the investment within the VC and what benefit if any there is seen to be in a certain sector.

I tend to agree with you, unless they can increase production eg entry into US market, its hard to see how it may survive longer term.

Dave, I tried to find a road spec roll over bar 3 years ago for our Plus Six, I talked to Henry at Williams at that time and the answer was they were looking at it but "dont hold your breath".. Havent heard much since on the subject, although you are not alone on this quest, as others on TM have voiced similar thoughts for the Plus Four and Six.. I have only seen racing variants including Williams own.. but sadly nothing yet for a road car.. I suspect some of the issue is the height/position of the seat in relation to the top when its put up and down. My drivers seat is set back about 3/4 along its travel, but raked back a little, this leaves it very tight indeed to the tops back screen when folding it up and down. I cant see how you could position a roll bar in the available space without removing or reducing the height of the seat head restraints.. Please let me know if you find anything for a road car as I would be interested..

A very simple view of gross profit and sales numbers suggests they make c£20k GP per car. So another 100 car sales might deliver £2m more contribution. If the c£10m exceptional costs are really exceptional and higher volumes can generate some improvements to production costs then getting volumes up to 1,000/year and not having recurring levels of exceptional costs might suggest getting to a 10% net margin might be possible on a sunny day with a following wind. Of course that depends on quality being what it needs to be etc etc as noted in previous posts...whatever I hope they survive...

We have to hope they do.

Needless to say, small volumes may allow you to customise more to you clients needs, but that does start to reduce economies of scale. Keep updating your vehicle specs and adding new models on an almost annual basis increases your development and stockholding costs, effectively undermines the second hand residuals and the sense of marque exclusivity and mystique, also in exposes it to a newer wider audience who may not be in tune with the brand dynamics/reliability beyond the showroom. I'm staggered at the number of second hand CX's for sale with really low mileages

The 4 wheeler and 3 wheeler families are so far apart, it must eg spread development and research resources to the limit.Surely greater consolidation of model range and stop the almost annual model updating would deliver better economies of scale. There again some may argue that small flexible production facilities can introduce and produce a greater range of vehicles to meet specific customer needs/ usually at a much higher price point, but some may question the development and engineering resources available and committed to deliver a quality reliable product. Having said that even the big boys with their massive development and engineering resources on a regular basis can be found wanting. There's no easy answer.

The accounts for 2024 have now been published. I wont pretend to understand how it works at this level.

Can someone with more accounting knowledge make sense of them?

Accounts

I have not reviewed the numbers but suggest this extract from the latest MMC Strategic Report on page 3 sums up their corporate situation.....

The main risk of the company and its subsidiaries is the ability to continue to trade at a profit. This requires delivery of a
strong order book by the Morgan dealership network combined with a focus on gross and net margins. The company's
strategy in managing this risk relies upon the teams at the factory and its dealers delivering a level of sales and satisfaction
to customers. The delivery of target gross and net margins relies on efficient manufacturing and effective procurement. These
factors, along with the accuracy of sales forecasts, have a direct impact on the company's stock holding.

So there you have it.

There are a lot of polished "oh cwap" words in that statement.

Insufficient volume, dealers stuffed, little revenue means little profit.

The whole "Strategic Report" reads like it was written by AI.

Looks a complete dogs dinner. Wouldn’t touch one with a barge pole - I’ll risk it.