LONDON (Alliance News) - Shares in Cambria Automobiles PLC jumped Thursday after interim profit and revenue grew in a tough market, and as the company forecast full year results to be ahead of market expectations.
Shares in Cambria were 7.3% higher at 64.94 pence on Thursday.
For the six months ended February, pretax profit widened to GBP5.8 million from GBP4.5 million the year prior. This was after revenue rose to GBP308.3 million from GBP295.1 million the year before.
The improved performance was achieved despite the number of new and used vehicles being sold by the firm having fallen significantly. New unit sales fell 23% on the year prior, used vehicle unit sales down 8.8%.
Despite this, average profit per unit surged 31% for new vehicles and 11% for used vehicles after a reduction in low-margin commercial vehicles sales and a strengthening franchise mix.
"I am pleased with the group's financial results in the first half, which despite the economic backdrop, general consumer uncertainty, continued inconsistent messaging around diesel engines and cost pressures, were ahead of our expectations and substantially ahead of last year," Cambria Chief Executive Mark Lavery said.
Cambria proposed a 0.25 pence per share interim dividend, unchanged on the year prior.
"The significant disruption incurred in the prior year as a result of the group's refranchising activity is behind us and we are now starting to see the benefit of these changes coming through," Lavery added. "Our level of activity undertaken with our property development and refranchising efforts should not be underestimated and whilst the new franchises are still in their infancy, the potential earnings streams from these businesses is encouraging."
"Whilst the current economic environment remains uncertain, we are making good progress and remain well placed to accelerate the group's growth as a result of our robust underlying business model and enhanced franchised portfolio," Lavery continued. "Based on the results of the first half and the March performance, the board expects that performance for the full financial year will be ahead of current market expectations."