LONDON (Alliance News) - Franchised motor retailer Cambria Automobiles PLC said on Tuesday it remains "confident" it will maintain its momentum in the second half of the year and meet market expectations for the full year.
Despite this confidence, Cambria's revenue and pretax profit both reduced in the six months to February 28. Revenue fell by 4.5% to GBP295.1 million from GBP309.1 million the year before and pretax profit dropped by 18% to GBP4.5 million from GBP5.5 million.
Following "significant capital investment" Cambria has a cash position of GBP16.1 million and net debt of GBP390,000. In the same period last year, it had a net cash of GBP3.3 million.
The car dealership owner's interim dividend will remain at 0.25 pence per share.
New vehicle unit sales were down 16% year-on-year and 14% on a like-for-like basis. But Cambria said the reduced sales were "partially offset" by an increase in the average profit per unit as a result of an "improved portfolio mix".
Used vehicle sales did "well" on a like-for-like basis, though total used unit sales fell 6.7% year-on-year due to lost units from site closures and re-franchising activity. The profit per unit increased by 9.7%
Cambria's aftersales operations posted a revenue rise of 0.6%, and 6.1% like-for-like, with profit up 2.1%.
During the period Cambria closed a Honda dealership, an Alfa Romeo & Jeep dealership, and two bodyshops to facilitate two new Bentley business in Tunbridge Wells and Chelmsford, and a Lamborghini dealership, also in Chelmsford.
Construction of its new Jaguar, Land Rover, Aston Martin, & McLaren dealership on one site in Hatfield started in February, though it was delayed slightly due to planning issues.
Looking ahead, Cambria is cautious about the new car market. The UK government's clean air policy narrative and mixed messages on diesels has hit diesel car demand, it said, and currency will also provide a headwind.
Chief Executive Mark Lavery said: "I am pleased that the group has delivered a solid financial performance in the first half which gives us confidence that we will maintain momentum in the second half and deliver a financial performance which is in line with current market expectations for the year as a whole.
"This is a notable achievement given the economic backdrop, consumer uncertainty, diesel demonisation and cost pressures. The continued pressure in the new car market was predictable and we highlighted this in our preliminary results last year. I am pleased with the improvements in both the used car and aftersales departments that have partially offset the pressure seen in new cars."
He added: "The board remains confident that Cambria, with its strong balance sheet and superior stable of brands, will maintain its momentum in the second half and deliver a financial performance in line with current market expectations."
Shares in Cambria were up down 2.4% Tuesday midday to 59.51 pence each.
