Marshalls (E.A.) Ltd — Tue, February 16 2010 myStocks!

Marshalls (East Africa) Limited is principally engaged in the assembly, sale and service of motor vehicles. Sale of goods are recognized in the period, in which the Company delivers products to the customers, the customer has accepted the products and collectability of the related receivables are assured. Sale of services are recognized in the period, in which the services rendered are completed.

Marshalls House Harambee Avenue PO Box 30366 Nairobi 00100, Kenya +254-20-330061 (Phone)
+254-20-219146 (Fax)

Updated: Tue, June 17, 2008

Business Performance

Marshalls mainly specialize in motor dealership in Peugeot and Tata brands. After the phasing out of its most successful brand in the market, the Peugeot 504, the firm has attempted to reinvigorate sales with the Peugeot 206 and 307 brands for corporate and individual clientele coupled with Tata trucks for commercial users. These models are bound to face stiff competition in the saloon and trucks market segment respectively, especially if they cannot compete in fuel consumption efficiency — in this era of high fuel prices. In addition, sales of saloon cars appear to be slowing downs as indicated by the 12% decline in total industry sales for the first seven months of 2006 with overall industry sales slowing down to 3.7%. These trends give an indication that industry growth is grinding to a halt although the plan by the Government to phase out 14-seater matatus, which if effected, is likely to rejuvenate industry growth. However, Marshalls is not well positioned to take advantage of the anticipated boom in minibus and bus sales as the phasing out of 14-seaster matatus begins early next year. More so as it has no product offering for the Bus and minibus market segment.

In 2006, the firm's sales improved marginally by 3% to KES 1.30 Billion. Profits were also up slightly from KES 42.50 Million to KES 44.70 Million.

Future Prospects

The firm's outlook is largely hinged on the functional appeal of its new saloon brands and the continued vibrancy of the commercial sector, which by extension impacts on the demand for trucks.