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Cambria Interim Results 2016 10 May 2016


Cambria Automobiles plc (AIM: CAMB), the franchised motor retailer, is pleased to announce its unaudited interim results for the six months ended 29 February 2016, which again show revenue and profits substantially ahead of the comparable period in the prior year, and continued delivery of the Group's strategy.

Financial highlights:

  • Revenue increased by 14.7% to £278.4m (H1 2015: £242.8m)
  • Underlying Profit before tax up 40.1% at £4.6m (H1 2015: £3.3m)
  • Underlying Earnings per share increased 42.5% to 3.69p (H1 2015: 2.59p)
  • Underlying net profit margin up 22.8% to 1.67% (H1 2015: 1.36%)
  • Positive operational cash flows maintained, with a cash position of £25.3m (H1 2015: £13.0m) and net cash of £0.3m (H1 2015 net debt: £0.9m)
  • Strong balance sheet with net assets of £37.6m (H1 2015: £30.4m)
  • Rolling twelve month Return on Equity* of 21.15% (H1 2015: 18.65%)
  • Interim dividend increased by 33.3% to 0.2p (H1 2015: 0.15p)
  • New £37.0m, 5 year banking facilities arranged providing additional funding capacity for growth

Operational highlights:

  • New vehicle sales up 5.1% with a 15.4% increase in profit per unit
  • Used vehicle sales up 4.4% with a 9.7% improvement in profit per unit and evolution of the Group's focus on return on investment
  • Aftersales revenue increased by 8.6% with gross profit improvement of 5.8%
  • Acquisition of Welwyn Garden City Land Rover for £10.8m, integration progressing well
  • Disposal of Exeter Jaguar in line with strategy of the Group and Jaguar Land Rover
  • Swindon Land Rover acquisition delivered a positive profit contribution in line with expectations

Post Period End:

  • Opened third Aston Martin business, in Birmingham
  • Disposal of Croydon Jaguar in line with the strategy of the Group and Jaguar Land Rover
  • Trading in the key plate change month of March was strong, ahead of plan and substantially ahead of previous year

* underlying profit after tax as a proportion of Average Shareholder's funds

Mark Lavery, Chief Executive of Cambria, said:

"The Group's financial performance in the first half of the financial year has been strong. We have delivered increased profitability across the business, and I am particularly pleased with the performance in the used car operation where we are bucking the trend in the market and seeing increasing return on used car investment, up to 148% in the period through improved stock management and sales process efficiency, which is a result of the industry leading digitised, data driven used car retailing systems. The acquisition of the Land Rover business in Welwyn Garden City secures the territory for the Group to represent Jaguar Land Rover and we are encouraged by the potential for this business.

"For the fourth consecutive year the Group's performance in the all-important plate change month of March was strong and ahead of both our business plan and substantially ahead of the previous year. The Board is confident that Cambria will maintain this momentum in the second half and will be ahead of current market expectations for the year as a whole. With the acquisition and development opportunities available the Board is confident of continuing to deliver the Group's growth strategy."