Cambria Automobiles Plc Trading Update and Notice of Interim Results (7587G)
06 March 2018 - 6:00PM
UK Regulatory
TIDMCAMB
RNS Number : 7587G
Cambria Automobiles Plc
06 March 2018
6 March 2018
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 first five months to
28 February 2018:
Franchise update
In January, the Group completed the refurbishment of existing
freehold properties to locate the two new Bentley businesses in
Tunbridge Wells and Chelmsford. The refurbishments were completed
efficiently and both businesses are establishing themselves in the
new facilities. The work to create the Group's first Lamborghini
dealership in Chelmsford is nearing completion for an expected site
launch in March 2018.
The construction of the Group's Jaguar, Land Rover, Aston Martin
and McLaren dealership on one site in Hatfield commenced in
February 2018. There was a slight delay in starting the works
whilst planning conditions were discharged, but these have now been
addressed and the construction work is progressing. On the
discharging of the planning conditions, the Group was able to
complete on the purchase of the 4.3 acre development plot. During
the course of January, the Group built a substantial temporary
McLaren showroom on the site and actively began trading at the end
of January.
To facilitate the new aforementioned Bentley and Lamborghini
dealerships in Tunbridge Wells and Chelmsford, the Group has closed
one Honda dealership, one Alfa Romeo and Jeep dealership and two
bodyshop operations.
Trading update
The Group's trading performance in the first five months of the
current financial year has been in line with the Board's
expectations, albeit behind the corresponding period in 2016/17,
both on a total and like-for-like basis. This trading performance
during the period continues the trend highlighted in the Group's
preliminary results on 22 November 2017 and AGM trading update on 4
January 2018 and means that the Group is trading in line with
market expectations for the full year.
The weaker new car market has seen pressure on volumes in the
period although calendar year 2017 bonus earnings have enhanced
average Group margins across the five month period. New vehicle
unit sales were down 16.5% (like-for-like down 14.6%), but with
gross profit per retail unit improving to partially offset the
reduced volume.
Used vehicle sales continued to perform well on a like-for like
basis. Like-for-like units were in line with the same period in the
prior year, whilst total used unit sales were down 6.8% as a result
of the lost units from the site closures and refranchising activity
carried out to enhance the Group's portfolio. This overall unit
reduction was offset by continued improvement in gross profit per
unit and this performance continues to enhance the profit from the
used car segment of the business.
Overall, the Group's aftersales operations delivered a good
performance, with revenue increasing by 0.6% (like-for-like up
6.1%), with profitability up 2.1% year on year (like-for-like up
8.2% excluding the two bodyshops, Honda, Alfa Romeo and Jeep
dealerships and Swindon Motor Park).
Outlook
The Board continues to remain cautious about the new car market.
The government's clean air policy narrative and the inconsistent
messaging around the forward looking position on diesel engines has
created a reduction in consumer demand for diesel vehicles which
formed 42% of the new car market in 2017 and 47.7% in 2016. The new
car market in 2017 was down 5.7% to 2.54m units in comparison to
the 2016 record registration levels of 2.69m. All of the reduction
was seen in the diesel segment which fell from 1.29m to 1.07m
units.
The general uncertainty in the consumer environment remains, as
does the pressure that vehicle manufacturers are under as a result
of the current Sterling exchange rate. Cambria has made significant
steps in progressing its property and franchising strategy through
2017 and into 2018 which has enhanced the Group's excellent
portfolio of dealerships and Brand partners. Whilst the outlook has
some micro and macroeconomic challenges, the Board believes that
the Group is well placed to continue to deliver on its strategy of
enhancing the Group's portfolio with the arrival of Bentley,
Lamborghini and McLaren in the period.
The Group will announce its Interim Results for the six months
to 28 February 2018 on 9 May 2018.
-Ends-
Enquiries:
Cambria Automobiles Tel: 01707 280
Mark Lavery, Chief Executive 851
James Mullins, Finance
Director
www.cambriaautomobilesplc.com
N+1 Singer - Nomad & Joint Tel: 020 7496 3000
Broker
Alex Price
Jen Boorer
Zeus Capital - Joint Broker Tel: 020 7533 7727
Dominic King
FTI Consulting Tel: 020 3727 1000
Alex Beagley / James Styles
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 company news service from the London Stock Exchange
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