TIDMCAMB
RNS Number : 2662N
Cambria Automobiles Plc
08 May 2018
8 May 2018
Cambria Automobiles plc
("Cambria" or the "Group")
Unaudited Interim Results 2018
Cambria Automobiles plc (AIM: CAMB), the franchised motor
retailer, is pleased to announce its unaudited interim results for
the six months ended 28 February 2018, which show that the Group
has continued to deliver on its Brand and property strategies. The
Board remains confident that Cambria will maintain its momentum in
the second half and deliver a financial performance in line with
market expectations for the year as a whole.
Financial highlights:
-- Revenue reduced by 4.5% to GBP295.1m (H1 2017: GBP309.1m)
-- Underlying profit before tax down 14.3% at GBP4.8m (H1 2017: GBP5.6m)
-- Underlying earnings per share decreased 13.4% to 3.82p (H1 2017: 4.41p)
-- Underlying net profit margin of 1.63% (H1 2017: 1.8%)
-- Positive operational cash flows maintained, with a cash
position of GBP16.1m (H1 2017: GBP17.2m) and net debt of GBP0.39m
(H1 2017 net cash: GBP3.3m) following significant capital
investment
-- Strong balance sheet with net assets of GBP53.20m (H1 2017: GBP45.86m)
-- Rolling twelve month return on equity* of 17.38% (H1 2017: 21.76%)
-- Interim dividend maintained at 0.25p (H1 2017: 0.25p)
Operational highlights:
-- New vehicle sales, were as expected given market softening,
down 16.2% (like-for-like down 14.1%) with the reduced unit impact
partially offset by an increase in average profit per unit as a
result of improved portfolio mix
-- Used vehicle sales were slightly down 0.8% on a like-for-like
basis although profit per unit increased by 7.3% to more than
offset the small volume reduction. Overall units were down 6.7%
after the site closures which was more than offset by a 9.7%
increase in profit per unit
-- Aftersales revenue increased by 6.1% on a like-for-like basis
and 1.1% overall with accompanying gross profit improvement
-- Acquired trade and assets of the Bentley Essex and Kent
businesses in January and relocated into newly refurbished
facilities at the Group's existing Chelmsford and Tunbridge Wells
sites
-- Addition of the high luxury Lamborghini franchise to the
Group with a newly developed facility in Chelmsford
-- Group's first McLaren dealership opened in January 2018 in
Hatfield, operating on the Group's major Hatfield development
site
-- As planned, closure of the Group's two bodyshop operations,
Alfa Romeo and Jeep in Chelmsford and Mazda and Honda in Tunbridge
Wells, to facilitate the addition of Bentley in both locations and
Lamborghini in Chelmsford
-- Swindon Jaguar Land Rover development progressing well ahead
of anticipated occupation in July 2018
-- Hatfield Jaguar Land Rover, Aston Martin and McLaren
development progressing well for completion of Jaguar Land Rover in
December 2018 and Aston Martin and McLaren in January 2019
* underlying profit after tax as a proportion of Average
Shareholder's funds
Mark Lavery, Chief Executive of Cambria, said:
"I am pleased that the Group has delivered a solid financial
performance in the first half which gives us confidence that we
will maintain momentum in the second half and deliver a financial
performance which is in line with current market expectations for
the year as a whole. This is a notable achievement given the
economic backdrop, consumer uncertainty, diesel demonisation and
cost pressures. The continued pressure in the new car market was
predictable and we highlighted this in our preliminary results last
year. I am pleased with the improvements in both the used car and
aftersales departments that have partially offset the pressure seen
in new cars.
"We have made excellent progress with the Group's franchising
strategy, adding two Bentley dealerships, one Lamborghini
dealership and one McLaren dealership in the period.
"Aside from the property refurbishments to facilitate the
addition of the four newly opened High Luxury businesses, we have
also made positive strides with the major property projects
underway in Swindon for Jaguar Land Rover and at Hatfield for
Jaguar Land Rover, Aston Martin and McLaren. The developments are
progressing well and, once completed, will enhance our already
excellent site portfolio and brand representation whilst supporting
the Group's long term trading prospects. The Board remains
confident that Cambria, with its strong balance sheet and superior
stable of brands, will maintain its momentum in the second half and
deliver a financial performance in line with current market
expectations."
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
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, 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 with a balanced Brand portfolio producing
attractive returns on capital.
CHIEF EXECUTIVE'S REVIEW
Introduction
I am pleased to report another solid set of results, delivering
underlying profit before tax of GBP4.8m, despite the difficult new
car market and uncertain consumer outlook. The results in the first
half of our 2018 financial year have shown sustained improvement in
our used car and aftersales businesses which have helped to
partially offset the reduced profitability in the new car
department.
The Group has made significant progress in its franchising
activity by adding Bentley, Lamborghini and McLaren to the brands
that the Group represents. It has also made solid progress with the
major property developments being undertaken and the combination of
the new franchises and conclusion of these developments will create
an enhanced foundation for the Group in the coming years. In order
to deliver the new franchises, the Group has closed one Honda
dealership, one Alfa Romeo and Jeep dealership, two bodyshop
operations and, on 30 April 2018 (post period end), closed one
Mazda dealership in Tunbridge Wells to facilitate the addition of
another dealership for a Brand already represented by the Group
which we expect to open in August 2018. These closures have
impacted revenue and gross profit generation from those businesses
in the period.
Since the Group's inception in 2006, it has remained focused on
driving growth for shareholders, taking the original GBP10.8m of
share capital, with no further equity raised subsequently and
reinvesting the earnings in property and franchises. Despite the
overall reduction in profitability in this period, the Group has
still delivered another strong return on shareholders' funds which
was 17.38% for the rolling twelve month period.
Financial highlights:
Six months Six months Change
ended ended
28 February 29 February
2018 2017
Revenue GBP295.1m GBP309.1m -4.5%
Underlying EBITDA* GBP6.4m GBP6.7m -4.5%
Underlying operating
profit* GBP5.3m GBP5.8m -8.6%
Underlying profit before
tax* GBP4.8m GBP5.6m -14.3%
Underlying net profit
margin* 1.63% 1.81% -18bps
Underlying earnings per
share* 3.82p 4.41p -13.4%
Non-recurring (expense)/income* (GBP0.3m) (GBP0.1m)
EBITDA GBP6.1m GBP6.6m -7.6%
Operating profit GBP5.0m GBP5.7m -12.3%
Profit before tax GBP4.5m GBP5.5m -18.2%
Net profit margin 1.54% 1.77% -23bps
Earnings per share 3.61p 4.34p -16.8%
*Underlying numbers exclude non-recurring expense of GBP0.3m in
2018 relating to the closure of businesses for the redevelopment
and refranchising of sites. There were non-recurring expenses of
GBP0.1m in 2017 relating to the Swindon site closure
Underlying profit before tax was down 14.3% to GBP4.8m (H1 2017:
GBP5.6m) with the Group's net profit margin at 1.63%. The segmental
analysis between departments highlights that the new car department
attributed GBP1.5m of the gross profit reduction with used cars and
aftersales partially offsetting the reduction with a GBP0.6m
combined improvement. Removing the impact of the closed businesses
and newly opened businesses gives a like-for-like underlying profit
before tax of GBP5.4m (H1 2017: GBP5.8m).
Underlying operating profit decreased 8.6% to GBP5.3m (H1 2017:
GBP5.8m), which resulted in an operating margin of 1.8% (H1 2017:
1.88%). Underlying earnings per share were 3.82p (H1 2017:
4.41p).
Gross profit decreased by 2.5% to GBP35.2m (H1 2017: GBP36.1m)
with the new car division down GBP1.5m; used cars up GBP0.2m and
aftersales up GBP0.4m. With the mix shifting away from new cars
which operate at a lower margin, the overall gross profit margin
across the Group showed a modest increase over the previous period,
as expected, to 11.9% (H1 2017: 11.7%).
The Board considered the expenses associated with the business
closures, acquisition fees and refranchising activity of GBP0.3m
(H1 2017: GBP0.1m) to be non-recurring.
Net finance expenses for the period increased to GBP0.46m (H1
2017: GBP0.24m), partly due to the increased level of borrowing
against the enhanced property assets and partly as a result of the
increased consignment stock costs resulting from the reduced new
car sales, the Board identified this during the period and took
action to reduce consignment stock levels appropriately. The tax
charge for the period of GBP0.9m represents an effective tax rate
of 20.37% (H1 2017: 20.88%).
Balance sheet
Cambria has a robust balance sheet with net assets of GBP53.2m
(H1 2017: GBP45.8m), underpinned by GBP53.6m of freehold and long
leasehold property.
The Group had a net debt position as at 28 February 2018 of
GBP0.4m (H1 2017, net cash: GBP3.3m), reflecting gross debt of
GBP16.5m (H1 2017: GBP13.95m) and the cash position of GBP16.1m (H1
2017: GBP17.3m).
Cash flow
Operating cash generation continues to be a key strength of the
business and during the period the Group generated an operating
cash inflow of GBP5.8m (H1 2017: GBP8.0m).
As a Group, Cambria is committed to investing in its dealerships
to increase capacity, comply with manufacturer brand standards and
enhance the facilities for guests and associates. During the period
there has been GBP11.5m of total capital expenditure incurred and a
number of other development projects initiated. The Swindon Jaguar
Land Rover property development has incurred GBP2.9m of costs
during the period and has a further GBP3m expected outlay to
completion of the property project during H2. The Hatfield property
development has incurred GBP6m in H1 including the land purchase.
It is estimated that there will be GBP6m incurred in H2 with the
remaining GBP5m property investment in the 2019 financial year. The
two Bentley dealerships and Lamborghini dealership refurbishments
incurred GBP1.1m in the period.
During the period the Group completed the refinancing of its
banking facilities, fully repaying its previously drawn term loan,
with a new GBP40m, five year Revolving Credit Facility ("RCF"). The
structure of the revised RCF gives flexibility to the Group when
looking at its funding requirements through its capital investment
cycle. There are no fixed capital repayments due under the
facility. A dividend of GBP0.75m, relating to the 2017 financial
year, was paid in January 2018 following approval at the Annual
General Meeting.
The total net cash outflow for the period was GBP6.9m (H1 2017:
outflow GBP2.6m).
Dividend
The Board is pleased to declare an interim dividend of 0.25p per
share (H1 2017: 0.25p per share). The dividend will be payable on
15 June 2018 to those shareholders on the register on 18 May 2018.
The Board intends to maintain last year's dividend for the full
financial year.
Acquisitions and new dealerships
Cambria's ongoing strategy is to build on the favourable mix of
its brand portfolio and maintain a good balance of high luxury,
premium and volume brands. It has made good progress over the past
four years in delivering on this strategy by acquiring businesses
and opening dealerships as follows:
-- Barnet Jaguar Land Rover in July 2014
-- Swindon Land Rover in April 2015
-- Welwyn Garden City Land Rover in January 2016
-- Aston Martin Birmingham in May 2016
-- Woodford Jaguar Land Rover in July 2016
-- Bentley in Essex and Kent in January 2018
-- McLaren in Hatfield in January 2018
-- Lamborghini in Chelmsford in April 2018
Capital commitments
The major new build developments at Swindon for Jaguar Land
Rover and Hatfield for Jaguar Land Rover, Aston Martin and McLaren
are making good progress. The delays to the start of both projects
arose from obtaining final planning condition discharges from the
environment agency at Swindon and Archaeology officer at Hatfield.
We now anticipate that Swindon will be complete in July 2018 and
Hatfield will be ready for the Jaguar Land Rover dealership
occupation in December 2018 and for Aston Martin and McLaren in
January 2019. During the remainder of the 2018 financial year there
is an expected GBP3m of capital to be invested in the property for
Swindon and GBP6m for the Hatfield property in FY2018 and GBP5m in
FY2019. We expect the refurbishment at Tunbridge Wells to be
c.GBP0.6m in FY2018. The Birmingham Aston Martin development is
anticipated to be c.GBP5m and that commitment will span the 2018
and 2019 financial years. The Group therefore has approximately
GBP20m of capital commitment to property projects.
Business closures
During the period the Group concluded the closure of its Honda
dealership in Tunbridge Wells and its Alfa Romeo and Jeep business
in Chelmsford. Located at both of these sites were also bodyshops
that needed to close to create scope for the new franchises at both
locations. Post period end, the Group has closed the Mazda
dealership in Tunbridge Wells. The closure of these businesses has
removed revenue and gross profit during the period.
Operations
Six months ended 28 February Six months ended 28 February
2018 2017
Revenue Revenue Gross Margin Revenue Revenue Gross Margin
mix profit mix profit
GBPm % GBPm % GBPm % GBPm %
New Vehicles 134.3 45.5 9.7 7.2 143.5 46.4 11.2 7.8
Used Vehicles 131.6 44.6 11.8 9.0 137.1 44.4 11.6 8.5
Aftersales 35.2 11.9 13.7 38.9 34.8 11.2 13.3 38.2
Internal sales (6.0) (2.0) (6.3) (2.0)
-------- -------- --------- ------- -------- -------- --------- -------
Total 295.1 100.0 35.2 11.9 309.1 100.0 36.1 11.7
Underlying Admin
expenses (29.9) (30.3)
Underlying Operating
Profit 5.3 5.8
New vehicles sales
H1 2018 H1 2017 Year-on-year
New units 4,478 5,344 (16.2%)
--------- -------- -------------
New vehicle revenue decreased by 6.4% to GBP134.3m (H1 2017:
GBP143.5m) with total new vehicle sales volume down 16.2%. The new
vehicle gross profit margin was 7.2% (H1 2017: 7.8%) and there was
a GBP1.5m reduction in gross profit. The average profit per unit
sold increased by 2.4%, a combination of like-for-like increase and
strengthening brand portfolio. On a like-for-like basis, excluding
the impact of the closed businesses and the relatively small number
of cars sold in the period by the new businesses due to timing of
openings, our new volumes reduced by 14.1% with gross profit
reducing by GBP1.3m as profit per unit increased by 1.9% on a
like-for-like basis.
The Group's sale of new vehicles to private individuals was
18.6% lower year-on-year at 3,720 units, showing the volume
reduction that we anticipated. New commercial vehicle sales
increased by 45.6% to 498 units in the period. New fleet vehicle
sales decreased by 40% to 260 units.
The new car volume reduction that has been experienced comes
against not only a backdrop of record registration numbers in the
previous financial year but also a very challenging and uncertain
consumer outlook which is impacting the new car market
significantly.
Used vehicle sales
H1 2018 H1 2017 Year-on-year
Used units 6,833 7,327 (6.7%)
-------- -------- -------------
We have delivered another good performance in used vehicle
sales. Revenues reduced by 4% to GBP131.6m (H1 2017: GBP137.1m)
whilst the number of units sold decreased by 6.7% primarily as a
result of the closure of Swindon Motor Park which was a high volume
used car operation and traded for the first four months of last
year. The gross profit on used vehicles increased by 1.9% to
GBP11.8m (H1 2017: GBP11.6m), with the profit per unit sold
increasing by 9.7%. On a like-for-like basis, excluding the impact
of the site closures and new additions, our used volumes decreased
0.8% but was more than offset by a profit per unit increase of
7.3%.
We have continued our focused strategy in the used car
department to increase the efficiency with which we source, prepare
and market our used vehicles in order to drive the Group's Velocity
trading principles. This has produced strong results, increasing
the profitability of the used car department from an already strong
base. During the period, this strategy continued to deliver a
strong 12 month rolling return on used car investment* of 129%.
* gross profit from used car operation over 12 months as a
proportion of average stock levels for the year
Aftersales
H1 2018 H1 2017 Year-on-year
Aftersales
Revenue GBP35.2m GBP34.8m 1.1%
---------- ---------- -------------
Aftersales revenue increased by 1.1% year on year to GBP35.2m
(H1 2017: GBP34.8m), and the related gross profit increased to
GBP13.7m (H1 2017: GBP13.3m). Like-for-like aftersales revenue was
6.1% higher year on year, with gross profit up GBP1m. The
aftersales department contributed 38.9% of the Group's overall
gross profit.
Guest experience
The Group continues to review its processes for ensuring that it
engages with all Guests to maximise the interaction opportunities
through the Group's award winning and recognised approach to its
digital Guest experience strategy. The Group continues to invest in
its ability to facilitate Guest interaction through digital tools
with the launch of its new lead handling tool, "Engagement Pro".
Within the aftersales environment the Group has a Guest
Relationship Management programme which involves the sale of our
Warranty 4 Life product, service plans and delivery of service and
MOT reminders in a structured manner, utilising all forms of
digital media and traditional communication methods.
Outlook
The Board remains cautious about the new car market. The
pressures around new car volumes have been well publicised and,
when combined with consumer uncertainty, these factors create
pressure on margins and volumes. The UK government's clean air
policy has unsettled the sale of cars powered by diesel engines and
this represents a significant proportion of the cars sold in the UK
by a number of our Brand partners. The SMMT March registration data
showed a 15.7% reduction year on year taking the three month YTD
registrations figure to be down 12.4% with diesel sales down 33.3%
year on year.
The Group has taken action in the used car and aftersales
departments that have offset some of the gross profit reduction
from new car sales. It has also added exciting new franchises that
will make a positive and potentially significant contribution to
earnings once established in their respective locations.
Despite an environment where there is indirect expense inflation
as a result of increases in business rates, pension contributions,
the apprentice levy, debit and credit card charges, the Group is
taking proactive steps to mitigate any cost increases.
The continued focus on delivering improvements from the Group's
new franchises and completion of the property projects will lay
further solid foundations for growth. In addition, the revised
banking facilities give the Group the flexibility in its property
projects and enable it to review acquisition opportunities as they
arise. Cambria has an experienced management team with a strong
track record and remains focused on delivering value for its
associates, brand partners, guests and shareholders. As a result of
the hard work undertaken to further enhance the Group's property
portfolio and brand mix over the period, the Board remains
confident that Cambria will maintain its momentum in the second
half and deliver a financial performance in line with market
expectations for the year as a whole.
Mark Lavery
Chief Executive
8 May 2018
Consolidated Statement of Comprehensive Income
for the six months ended 28 February 2018
6 months to 6 months to 12 months to
Notes 28 February 29 February 31 August 2017
2018 2017
GBP000 GBP000 GBP000
Revenue 295,056 309,083 644,286
Cost of Sales (259,863) (272,968) (571,607)
Gross Profit 35,193 36,115 72,679
Administrative expenses (30,199) (30,392) (60,901)
Results from operating activities 4,994 5,723 11,778
Finance income 55 24 49
Finance expenses (510) (262) (576)
Net finance expenses (455) (238) (527)
---------------------------------- ------- ------------ ----------------------------- ---------------
Profit before tax from operations
before non-
recurring (expense)/income 4,802 5,568 11,265
Non-recurring (expense)/income (263) (83) (14)
Profit before tax 4,539 5,485 11,251
Taxation 6 (925) (1,145) (2,071)
Profit and total comprehensive
income for the period 3,614 4,340 9,180
Basic and diluted earnings
per share 4 3.61p 4.34p 9.18p
Consolidated Statement of Changes in Equity
for the six months ended 28 February 2018
Share Share Retained Total
Capital premium earnings Equity
GBP000s GBP000s GBP000s GBP000s
For the 6 months ended 28
February 2018
Balance at 31 August 2017 10,000 799 39.557 50,356
Profit for the period - - 3,614 3,614
Dividend paid - - (750) (750)
Balance at 28 February 2018 10,000 799 42,421 53,220
For the 12 months ended
31 August 2017
Balance at 31 August 2016 10,000 799 31,327 42,126
Profit for the period - - 9,180 9,180
Dividend paid - - (950) (950)
Balance at 31 August 2017 10,000 799 39,557 50,356
For the 6 months ended 28
February 2017
Balance at 31 August 2016 10,000 799 31,327 42,126
Profit for the period - - 4,340 4,340
Dividend paid - - (700) (700)
Balance at 28 February 2017 10,000 799 34,967 45,766
Consolidated Statement of Financial Position
as at 28 February 2018
As at As at As at
28 February 28 February 31 August 2017
2018 2017
GBP000 GBP000 GBP000
Non-current assets
Property, Plant & equipment 59,705 47,006 49,321
Intangible assets 21,346 21,346 21,365
Deferred tax asset - 15 -
81,051 68,367 70,686
Current assets
Inventories 108,314 110,912 105,419
Trade and other receivables 13,282 11,280 12,428
Cash & Cash equivalents 16,145 17,245 23,046
137,741 139,437 140,893
Total assets 218,792 207,804 211,579
Current liabilities
Other interest bearing loans
and borrowings - (1,000) (1,000)
Trade and other payables (147,172) (145,977) (142,539)
Taxation (864) (1,111) (801)
(148,036) (148,088) (144,340)
Non-current liabilities
Other Interest Bearing loans
and borrowings (16,536) (12,950) (15,883)
Provisions (1,000) (1,000) (1,000)
(17,536) (13,950) (16,883)
Total liabilities (165,572) (162,038) (161,223)
Net assets 53,220 45,766 50,356
Equity attributable to equity
holders of the parent
Share capital 10,000 10,000 10,000
Share premium 799 799 799
Retained earnings 42,421 34,967 39,557
53,220 45,766 50,356
Consolidated Cash flow statement
for the six months ended 28 February 2018
6 months to 6 months to 12 months to
28 February 28 February 31 August 2017
2018 2017
GBP000 GBP000 GBP000
Cash flows from operating activities
Profit for the period 3,614 4,340 9,180
Adjustments for:
Depreciation, amortisation and
impairment 1,114 896 2,271
Finance income (55) (24) (49)
Finance expense 510 262 576
(Gain)/loss on sale of property,
plant and equipment 4 - 324
Taxation 925 1,145 2,071
Non recurring expenses 263 83 (411)
6,375 6,702 13,962
Decrease/(Increase) in trade
and other receivables (854) 2,034 886
(Increase) in inventories (2,895) (15,844) (10,351)
Increase in trade and other
payables 4,633 16,572 12,767
(Decrease)/increase in provisions - - -
7,259 9,464 17,264
Interest paid (361) (146) (350)
Taxation paid (862) (1,279) (2,461)
Non recurring expenses (263) (83) -
Net cash flow from operating
activities 5,773 7,956 14,453
Cash flows from investing activities
Interest received 55 24 49
Proceeds from sale of plant - - -
and equipment
Receipt of insurance claim settlement - - 411
Acquisition/purchase of property,
plant and equipment (11,483) (4,236) (7,941)
Net cash flow from investing
activities (11,428) (4,212) (7,481)
Cash flows from financing activities
Proceeds for new loan - - 3,433
Interest paid (149) (116) (226)
Repayment of borrowings (347) (5,500) (6,000)
Dividend paid (750) (700) (950)
Net cash (outflow)/inflow from
financing activities (1,246) (6,316) (3,743)
Net increase/(decrease) in cash
and cash equivalents (6,901) (2,572) 3,229
Cash and cash equivalents at
start of period 23,046 19,817 19,817
Cash and cash equivalents at
end of period 16,145 17,245 23,046
Notes
1 General information
Cambria Automobiles plc is a company which is listed on the
Alternative Investment Market (AIM) and is incorporated and
domiciled in the United Kingdom. The address of the registered
office is Swindon Motor Park, Dorcan Way, Swindon, SN3 3RA. The
registered number of the company is 05754547.
These interim financial statements as at and for the six months
ended 28 February 2018 comprise the Company and its subsidiaries
(together referred to as the "Group") and have been prepared in
accordance with Adopted International Financial Reporting Standards
as Adopted by the EU ("Adopted IFRS").
The financial statements for the period ended 28 February 2018
have neither been audited nor reviewed by the auditors. The
financial information for the year ended 31 August 2017 has been
based on information in the audited financial statements for that
period.
2 Accounting policies
The Group's principal activity is the sale and servicing of
motor vehicles and the provision of ancillary services.
The accounting policies adopted in this interim financial report
are consistent with the Group's financial report for the year ended
31 August 2017 and can be found on our website:
www.cambriaautomobilesplc.com.
3 Operating Segments
Segmental reporting
The Group complies with IFRS 8 'Operating Segments' which
determines and presents operating segments based on information
presented to the Groups Chief Operating Decision Maker ("CODM"),
the Chief Executive Officer. The Group is operated and managed on a
Dealership by Dealership basis. The CODM receives information both
on a dealership basis and by revenue stream (New, Used,
Aftersales). Given the number of dealerships, it was deemed most
appropriate to present the information by revenue stream for the
purposes of segmental analysis.
Six months ended 28 February Six months ended 28 February
2018 2017
Revenue Revenue Gross Margin Revenue Revenue Gross Margin
mix profit mix profit
GBPm % GBPm % GBPm % GBPm %
New Vehicles 134.3 45.5 9.7 7.2 143.5 46.4 11.2 7.8
Used Vehicles 131.6 44.6 11.8 9.0 137.1 44.4 11.6 8.5
Aftersales 35.2 11.9 13.7 38.9 34.8 11.2 13.3 38.2
Internal sales (6.0) (2.0) (6.3) (2.0)
-------- -------- --------- ------- -------- -------- --------- -------
Total 295.1 100.0 35.2 11.9 309.1 100.0 36.1 11.7
Underlying Admin
expenses (29.9) (30.3)
Underlying Operating
Profit 5.3 5.8
The CODM reviews the performance of the business in terms of
both net profit before tax and EBITDA, as such the following table
shows a reconciliation of EBITDA to the Profit before tax.
6 months to 6 months to
28 February 28 February
2018 2017
GBP000 GBP000
Profit Before Tax 4,539 5,485
Net finance expense 455 238
Depreciation 1,114 896
EBITDA 6,108 6,619
Non-recurring (Expenses)/Income 263 83
Underlying EBITDA 6,371 6,702
4 Earnings per share
Basic earnings per share is calculated by dividing the earnings
attributable to equity shareholders by the number of ordinary
shares in issue in the period. There is one class of ordinary share
with 100,000,000 shares in issue.
The share options in issue are not dilutive because the
performance conditions are not yet met. Details of the options in
issue are contained within the Annual Report to 31 August 2015.
6 months to 6 months to Year ended
28 February 29 February 31 August 2017
2018 2017
GBP'000 GBP'000 GBP'000
Profit attributable to shareholders 3,614 4,340 9,180
Non-recurring income and expenses 263 83 14
Tax on adjustments (at 20.37%)
(2017: 20.87%) (53) (17) (3)
Adjusted profit attributable
to equity shareholders 3,824 4,406 9,191
Adjusted number of share in
issue ('000s) 100,000 100,000 100,000
Basic earnings per share 3.61p 4.34p 9.18p
Adjusted earnings per share 3.82p 4.41p 9.19p
5 Acquisitions
Effect of Acquisitions in the period ended 28 February 2018
On 3 January 2018, the Group acquired the trade and assets of
the Bentley dealership in Essex from Jardine Motor Group for a
total cash consideration of GBP788,811. Transactions fees of
GBP21,736 have been expensed through operating expenses in the
period.
Recognised
values
on acquisition
GBP000
Acquiree's Net Assets at the acquisition
date
Plant and equipment 182
Inventories 708
Trade and other payables (312)
Customer Database 100
Customer Forward orders 108
788
Goodwill on acquisition -
Consideration Paid (transaction costs of
GBP21,736 have been written off to administrative
expenses), satisfied in cash 788
6 Taxation
The tax charge for the six months ended 28 February 2018 has
been provided at the effective rate of 20.37% (H1 2017:
20.87%).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAFSXEFSPEAF
(END) Dow Jones Newswires
May 08, 2018 02:01 ET (06:01 GMT)
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