TIDMCAMB
RNS Number : 7906P
Cambria Automobiles Plc
05 September 2017
5 September 2017
Cambria Automobiles plc
("Cambria" or the "Group")
AIM: CAMB
Trading Update and Notice of Preliminary Results
The Board of Cambria is pleased to announce that its trading for
the 11 months to 31 July 2017 is in line with expectations.
The Group maintained its momentum from the strong results
delivered in the last financial year and its trading performance in
the first 11 months of the current financial year has been ahead of
the corresponding period in 2015/16, both on a total and
like-for-like basis.
As flagged in our Interim Results statement on 9 May 2017, the
Board remains cautious on the consumer outlook and the trading
environment in the period post March has been more challenging,
particularly in the new car arena which has been impacted by a
number of factors. The weakening in the Sterling exchange rate has
led to inflation in the landed cost of imported vehicles into the
UK which, combined with a level of consumer uncertainty in the
market, has led to the anticipated reduction of new car sales.
The Group reported a strong H1 profit performance to the end of
February, and this continued in the key plate change month of
March. However, the performance in the period between April and
July has been weaker than the prior year as a result of these
market conditions.
Used vehicle sales continued to perform well and whilst unit
sales were 5.5% down following the closure of Swindon Motor Park
(like-for-like down 1.7%) the marginal reduction in units has been
more than offset by improved profit retention with gross profit per
unit on both a total and like-for-like basis continuing 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 8.4%
(like-for-like up 1.7%), with profitability up by 2.2% year on year
(like-for-like down 1.3%). This performance was impacted by a fire
at the Welwyn Garden City Jaguar and Aston Martin workshop in
October. The work to rebuild the workshop was completed in June and
we have since resumed normal operation. The business interruption
insurance claim has been submitted and will be included in the full
year results which will bring the aftersales LFL profit back in
line with prior year.
Whilst new vehicle unit sales for the 11 months were down 12.2%
(like-for-like down 17.6%), 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. The reduction in volume was partly attributed to the
reduction in unit sales from the Barnet Jaguar Land Rover site
during the disruption caused by the new building project, and
partly attributable to reductions in unit sales from certain volume
manufacturer partners. The achievement of annual new car volume
related bonuses for the 2016 calendar year and Q1 2017 has had a
positive impact on the profit per unit and has therefore offset any
reduction in the overall gross profit reported in the period.
Heading into the important September trading period, the new car
order book is building in line with our expectations in the current
market conditions.
The Group has made significant progress with its property
developments and site refurbishments during the period. We are
pleased with the Barnet Jaguar Land Rover state-of-the-art facility
which we have fully redeveloped and which we relaunched in July.
The Group has also managed the closure of its Swindon Motor Park
operation to facilitate the Jaguar Land Rover Arch concept
development which is now under construction on the site. In order
to facilitate the development of the Jaguar Land Rover and Aston
Martin site in Hatfield to replace the current Welwyn Garden City
facilities for the three brands, the Group has secured a 4.3 acre
development site in the Hatfield Business Park and is in the
process of obtaining the detailed planning consent so that the
facilities can be constructed during the 2018 calendar year.
The Group will announce its Preliminary Results for the year to
31 August 2017 on 22 November 2017.
Mark Lavery, Chief Executive of Cambria Automobiles plc,
commented:
"The Group has delivered a solid performance in the 11 months to
31 July 2017 and I am particularly pleased with the increases in
profit per unit in both new and used vehicles. We have had a busy
year having completed the substantial building project at our
Barnet Jaguar Land Rover site and have recently begun construction
of our new Jaguar Land Rover Arch concept site in Swindon.
"The Board continues to believe that there will be pressure on
new car volumes and margins in 2017 and 2018 with the current
macroeconomic uncertainty that prevails. However, the Group's
trading performance in the first 11 months indicates that trading
is in line with market expectations for the full year."
-Ends-
Enquiries:
Cambria Automobiles Tel: 01707 280 851
Mark Lavery, Chief Executive
James Mullins, Finance Director
www.cambriaautomobilesplc.com
N+1 Singer - Nomad & Joint Broker Tel: 020 7496 3000
Alex Price
Zeus Capital - Joint Broker Tel: 020 7533 7727
Dominic King
FTI Consulting Tel: 020 3727 1000
Alex Beagley / James Styles /
George Robinson
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 County Motor Works, 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, 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 GBP1 billion
turnover business producing attractive returns on capital.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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