LONDON (Alliance News) - Car dealership Cambria Automobiles PLC Tuesday reported higher profit and revenue for the first half of its financial year, as growth in new car sales outperformed the broader market and sales of used cars also rose strongly, and said it was looking to further expand the number of luxury and premium brands it sells.
Cambria, which currently sells brands including Aston Martin, Citroen, Ford, Jaguar, Honda, Renault, Vauxhall and Volvo from its 27 dealerships, reported a pretax profit of GBP2.0 million for the six months to February 28, up from GBP1.4 million a year earlier, as revenue rose to GBP204.8 million, from GBP179.1 million.
It said revenue and gross profit rose in both its new and used car operations, although fell in its aftersales business, which includes things like servicing. It blamed lower parts sales, specifically from one trade account.
New vehicle sales grew 17% on the year, which it said was well above the 10% growth in the UK new car market as a whole. The company's used car sales were up 9%, and profit per car improved 3.7%.
It said that trading results in the key car sales month of March, the first month of its fiscal second half, were ahead of its plan and the previous year, and "the board is confident of maintaining momentum in the second half".
The UK has two key sales months, March and September, due to registration plate changes in those months. March is always the biggest sales month of the year.
"In line with our strategy to improve the favourable mix of Cambria's portfolio, we continue to focus on further strengthening the group's position in luxury and premium brands and are actively exploring acquisition opportunities which have the potential to fulfil our ambitions," the company said in its statement.
It maintained its interim dividend at 0.1 pence, despite reporting a cash position of GBP12.99 million at the end of the fiscal half, up from GBP9.67 million a year earlier, while net debt had fallen to GBP0.7 million, from GBP3.0 million.
"The board aims to maintain a progressive dividend policy, but intends to ensure that the payment of a dividend does not detract from its primary strategy to continue to buy-and-build and grow the group," it said.
Cambria Automobiles shares were down 1.9% at 53.00 pence Tuesday.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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