LONDON (Alliance News) - Car retailer Lookers PLC Tuesday said it has sold its Jaguar and Land Rover business in Barnet, North London to Cambria Automobiles PLC, for GBP10.5 million in cash.
In a separate statement, Cambria said the acquisition marks its first Land Rover franchise and its sixth Jaguar dealership. It expects the acquisition to boost earnings in fiscal 2015, its next financial year. The dealership made revenue of GBP46 million in 2013 and adjusted pretax profit of GBP0.7 million.
It said it is paying GBP3.8 million for the freehold property, GBP5.0 million of goodwill, GBP0.5 million for fixed assets and GBP1.3 million for used cars, parts stock, demonstrator vehicles, accruals and prepayments. It intends to draw down a new term loan to pay for the freehold property and use existing financing facilities to pay for the rest.
Cambria, which operates by buying up underperforming dealerships and turning them around, also said it recently bought a second jeep franchise to sit alongside its FIat dealership in Oldham.
The car dealership operator added said that it continues to trade well, driven by a strong new car markets, and said it remains on track to at least match market expectations for the current financial year.
Panmure Gordon and N+1 Singer are both forecasting that Cambria will report a GBP5.0 million pretax profit in the current year, according to data from Morningstar. The company's financial year runs until the end of August.
Lookers shares were down 0.5% at 139.25 pence Tuesday morning, while Cambria shares were flat at 53.50 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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