Cambria Automobiles Plc Trading Update & Notice of Interim Results (9406R)
March 06 2019 - 1:00AM
UK Regulatory
TIDMCAMB
RNS Number : 9406R
Cambria Automobiles Plc
06 March 2019
6 March 2019
Cambria Automobiles plc
("Cambria" or the "Group")
AIM: CAMB
Pre-close Trading Update and Notice of Interim Results
The Board of Cambria provides the following update on its
franchising developments and trading for the five months to 31
January 2019:
The Group's trading performance in the first five months of the
current financial year to January 2019 has been ahead of the
corresponding period in 2018, both on a total and like-for-like
basis.
Franchise and Property update
During the course of 2018, the Group was able to capitalise on
the opportunity to deliver a number of franchise changes and
subsequently six new franchise developments, with two Bentley, two
Lamborghini, one McLaren and one Peugeot franchise added to the
Group's operations. These new franchise points are still in their
infancy but show clear potential for the future as they become more
mature. To make way for the refranchising of the new facilities,
the Group closed the operations that previously occupied these
premises and also closed the loss-making Blackburn site which
previously represented Alfa Romeo, Fiat, Renault and Volvo. The
franchise changes outlined above have impacted the dynamics of the
earnings streams given the value of the new cars being sold in the
High Luxury Segment dealerships.
As previously announced, the major property development for
Jaguar Land Rover in Hatfield was completed in December 2018 and
the relocation of the separate Jaguar and Land Rover facilities was
also concluded in December. The operations are bedding well into
the new facility. The completion of the Aston Martin and McLaren
facilities at Hatfield is progressing, although it is behind
schedule with occupation now timetabled for early April to avoid
any impact on the important March trading.
Trading update
During the period, the new car market has been significantly
affected by a number of factors including the impact of the changes
in the emissions testing regime to WLTP (Worldwide Harmonised Light
Vehicle Test Procedure) and the negative impact of the weak
sterling position on the imported price of the cars which has led
to price increases for many manufacturers. In the five-month period
the total new car market was down 10.1%. The diesel segment of the
market has been worst hit, continuing its decline in share, with
diesel registrations down another 30% in the period as a result of
the continued negative sentiment and Government policy towards
diesel engine technology. Diesel engines now accounts for 29.3% of
the market compared to 42% in 2017.
Supply side market influences have contributed to a reduction in
the Group's new vehicle sales, although this was partially offset
by improved gross profit per unit in the like-for-like businesses
and fully offset by the improved gross profit per unit across the
total Group. The gross profit per retail unit improved
significantly on a total basis as a result of the stronger mix from
the new franchised outlets (Bentley, Lamborghini and McLaren).
New vehicle unit sales for the period were down 23.2%
(like-for-like down 19.5%) although the prior year comparative
included a low margin commercial vehicle deal which has not been
repeated. The sales of new retail cars to private guests was down
16.2% (like-for-like down 11.0%). Certain of our volume
manufacturer franchises continue to be the largest cause of the
reduction in unit sales.
Used vehicle sales continued to perform well. Total used unit
sales were down 11.2% (like-for-like units down 3.8%) compared with
the same period in the prior year, however this unit reduction was
offset by continued improvement in gross profit per unit. The
significant changes to our franchise portfolio mix and closure of
the Blackburn site in the prior year had a material impact on sales
volumes. As a result of the improved profit per unit, both the
total and the like-for-like profit from the used car department of
the business improved year on year.
Overall, the Group's aftersales operations delivered a good
performance, with revenue increasing by 6.67% (like-for-like up
2.6%), gross profit up 4.3% year on year (like-for-like up 2.1%)
and aftersales contribution up 9.7% (like-for-like up 7.0%).
Outlook
Whilst challenges remain given the ongoing uncertainty around
Brexit and the terms of the UK's departure from the EU, the Group's
ongoing franchising and property development activities have
enhanced Cambria's excellent dealership portfolio mix and the
changes made in the prior year have further benefitted the Group.
These new businesses are still in their infancy, though as they
mature, their potential is exciting.
The Group will announce its Interim Results for the six months
to 28 February 2019 on 9 May 2019.
-Ends-
Enquiries:
Cambria Automobiles Tel: 01707 280851
Mark Lavery, Chief Executive
James Mullins, Finance Director
www.cambriaautomobilesplc.com
N+1 Singer - NOMAD & Joint Broker Tel: 020 7496 3000
Mark Taylor / Jen Boorer
Zeus Capital - Joint Broker Tel: 020 7533 7727
Dominic King
FTI Consulting Tel: 020 3727 1000
Alex Beagley / James Styles /
Fern Duncan
About Cambria - www.cambriaautomobilesplc.com
Cambria Automobiles ("Cambria") was established in 2006 and has
built a balanced portfolio of high luxury, premium and volume car
dealerships, comprising over 40 franchises representing major
brands across the UK. The Group's businesses are autonomous and
trade under local brand names, including County Motor Works, Dees,
Doves, Grange, Invicta, Motorparks and Pure Triumph.
The Group's strategy is to complement its existing franchise and
brand portfolio by acquiring earnings enhancing operations, using
its strong balance sheet and disciplined approach to capital
allocation.
Cambria's medium term ambition is to create a GBP1 billion
turnover business producing attractive returns on capital.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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