7 Mar 2017 07:00
7 March 2017
Cambria Automobiles plc
("Cambria" or the "Group")
AIM: CAMB
Pre-Close Trading Update and Notice of Interim Results
The Board of Cambria is pleased to announce the following trading update for the five months to 28 February 2017.
The Group has maintained its momentum from the strong results delivered in the last financial year and its trading performance in the first five months of the current financial year has been substantially ahead of the corresponding period in 2015/16, both on a total and like-for-like basis.
Used vehicle sales continued to perform well, with unit sales 0.6% (like-for-like up 2.6%) ahead of the same period in the prior year while gross profit per unit on both a total and like-for-like basis continued to increase. This performance has again enhanced the profit from the used car segment of the business year on year.
The Group's aftersales operations increased revenue by 11.7% (like-for-like up 2.6%), with profitability up by 3.8% year on year (like-for-like down 2.0%), impacted by a fire in October at the Welwyn Garden City Jaguar and Aston Martin workshop which continues to affect the business. There will be a business interruption insurance claim which has not been reflected in this trading update.
Whilst new vehicle unit sales for the five months were down 2.9% (like-for-like down 11.1%), the gross profit per retail unit improved over the same period in the Group's like-for-like businesses and therefore the gross profit in this department improved.
Heading into the important March trading period, the new car order book is building well and is in line with our expectations.
The Group has made significant progress with its property developments and site refurbishments during the period. It has also managed the closure of its Swindon Motor Park operation to facilitate the Jaguar Land Rover Arch concept development that is commencing imminently on that site.
The Board continues to believe that there may be some pressure on new car volumes and margins in 2017 with the current macroeconomic uncertainty in the economy. However, the Group's trading performance in the first five months indicates that it is trading in line with market expectations for the full year which the Board believes already reflect these uncertainties.
The Group will announce its Interim Results for the six months to 28 February 2017 on 9 May 2017.
Mark Lavery, Chief Executive of Cambria Automobiles plc, commented:
"I am pleased with the Group's performance over the period and the robust trading momentum we have maintained from last year. As previously flagged, we expect to see some industry wide pressures on new car volumes in 2017, however we remain confident that our resilient business model and high margin used and aftersales revenue streams will offset these pressures. We continue to be focused on integrating the businesses we have acquired and delivering on our targeted site investment strategy as we build on our competitive advantages over the year ahead."
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Enquiries:
Cambria Automobiles Mark Lavery, Chief Executive James Mullins, Finance Director www.cambriaautomobilesplc.com
| Tel: 01707 280 851 |
N+1 Singer - Nomad & Joint Broker Alex Price
| Tel: 020 7496 3000 |
Zeus Capital - Joint Broker Dominic King
| Tel: 020 7533 7727 |
FTI Consulting Jonathon Brill / Alex Beagley / James Styles
| Tel: 020 3727 1000 |
About Cambria - www.cambriaautomobilesplc.com
Cambria Automobiles ("Cambria") was established in March 2006 with the aim of creating a balanced independent UK motor retail group through a self-funded "buy and build" strategy, focused on turnaround opportunities.
Working in close cooperation with its manufacturer partners, the Group has built a balanced portfolio of 31 luxury, premium and volume dealerships, representing 45 franchises and 16 brands, with geographical representation spanning from the North West to the South East in Kent. These businesses are autonomous and trade under local brand names, including Dees, Doves, Grange, Invicta, Motorparks and Pure Triumph.
Cambria's brand portfolio currently comprises Abarth, Alfa Romeo, Aston Martin, Dacia, Ford, Fiat, Honda, Jaguar, Jeep, Land Rover, Mazda, Nissan, Renault, Triumph, Vauxhall and Volvo.
The management's success in turning around under-performing dealerships has allowed Cambria to build a strong balance sheet. As a result, the Group is in a position to acquire valuable premium operations, like the recently acquired Jaguar Land Rover dealership in Woodford, Land Rover dealership in Welwyn Garden City, Jaguar Land Rover business in Barnet and Land Rover business in Swindon, which are immediately earnings enhancing and directly in line with the Group's strategy to further enhance the brand portfolio.
The Group's medium term ambition is to create a £1 billion turnover business producing attractive returns on capital.