TIDMCAMB
RNS Number : 4385Y
Cambria Automobiles Plc
09 May 2019
9 May 2019
Cambria Automobiles plc
("Cambria" or the "Group")
Unaudited Interim Results 2019
Strong performance, Group well placed with enhanced franchised
portfolio
Cambria Automobiles plc (AIM: CAMB), the franchised motor
retailer, is pleased to announce its unaudited interim results for
the six months ended 28 February 2019, which show that the Group
has performed ahead of the prior year and ahead of management's
expectations. The Group has continued to deliver on its Brand
portfolio and property strategies in the period. Based on the
results of the first half and the March performance, the Board
expects that performance for the full financial year will be ahead
of current market expectations.
Financial highlights:
-- Revenue increased by 4.5% to GBP308.3m (H1 2018: GBP295.1m)
-- Underlying profit before tax up 14.6% at GBP5.5m (H1 2018: GBP4.8m)
-- Underlying earnings per share increased 18.1% to 4.51p (H1 2018: 3.82p)
-- Underlying net profit margin of 1.79% (H1 2018: 1.63%)
-- Positive operational cash flows maintained, with a cash
position of GBP22.9m (H1 2018: GBP16.1m) and net debt of GBP3.2m
(H1 2018 net debt: GBP0.4m) following GBP10.5m of capital
investment (GBP8.6m in freehold property)
-- Strong balance sheet with net assets of GBP60.6m (H1 2018: GBP53.2m)
-- Rolling twelve month return on equity* of 14.99% (H1 2018: 17.38%)
-- Interim dividend maintained at 0.25p (H1 2018: 0.25p)
Operational highlights:
-- New unit sales to retail customers reduced 16.3%
(like-for-like down 10.3%), although gross profit improved as a
result of the 21.6% (like-for-like up 2.7%) increase in profit per
unit following the improvement in the franchise portfolio mix
-- Lower margin Fleet and commercial units reduced 53.1% and 60.8% respectively
-- Overall units of new vehicle sales reduced by 23.4%
(like-for-like down 19.4%). The unit impact was offset by the
increase of 30.6% in average profit per unit resulting from the
combination of the like-for-like profit improvement, the improved
franchise portfolio mix and the reduction in lower margin fleet and
commercial units
-- Units of used vehicle sales down 8.8% (like-for like down
1.2%) although gross profit increased as a result of the 11.3%
improvement in profit per unit
-- Aftersales revenue increased by 6.5% (like-for-like up 2.7%)
with improvement in gross profit
-- H1 portfolio developments included:
o September 2018: Opening of Peugeot dealership in
Warrington
o November 2018: Opening of the Group's second Lamborghini
dealership, enhancing High Luxury Segment representation which grew
significantly in the previous financial year
o December 2018: Occupation of the newly completed Hatfield
Jaguar Land Rover Arch-Concept dealership
o December 2018: Disposal of Royal Wootton Bassett freehold
following relocation of Jaguar Land Rover to Swindon in previous
financial year
-- Post period portfolio developments included:
o April 2019: Opening of Suzuki dealership in Maidstone
o April 2019: Acquisition of land in Brentwood for development
of dealership facilities
o May 2019: Opening of Citroen dealership in Oldham
o May 2019: Occupation of completed Hatfield Aston Martin and
McLaren dealership
* underlying profit after tax as a proportion of Average
Shareholder's funds
Mark Lavery, Chief Executive of Cambria, said:
"I am pleased with the Group's financial results in the first
half, which despite the economic backdrop, general consumer
uncertainty, continued inconsistent messaging around diesel engines
and cost pressures, were ahead of our expectations and
substantially ahead of last year.
"The significant disruption incurred in the prior year as a
result of the Group's refranchising activity is behind us and we
are now starting to see the benefit of these changes coming
through. Our level of activity undertaken with our property
development and refranchising efforts should not be underestimated
and whilst the new franchises are still in their infancy, the
potential earnings streams from these businesses is encouraging.
Aside from the High Luxury Segment additions, we are also making
positive steps in refranchising some of the Group's underperforming
franchises.
"Whilst the current economic environment remains uncertain, we
are making good progress and remain well placed to accelerate the
Group's growth as a result of our robust underlying business model
and enhanced franchised portfolio. Based on the results of the
first half and the March performance, the Board expects that
performance for the full financial year will be ahead of current
market expectations."
This announcement contains inside information.
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
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.
CHIEF EXECUTIVE'S REVIEW
Introduction
I am pleased to report an improved set of results for the
period, delivering underlying profit before tax of GBP5.5m, up
14.6% on the prior year. The results in the first half of our 2019
financial year have shown sustained improvement in our used car and
aftersales businesses and a stabilisation in new car profitability
notwithstanding the reduction in new car volumes.
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 we are encouraged by their potential for the future as
they 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 positively
impacted the dynamics of the earnings streams given the value of
the new cars being sold in the High Luxury Segment dealerships.
Subsequent to the end of the first half, the Group has continued
to review its franchise mix and has added the Citroen franchise in
Oldham, the Suzuki franchise in Maidstone and the Vauxhall
franchise in Warrington alongside its Peugeot franchise.
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 at that time. The operations are bedding well into
the new facility. The completion of the Aston Martin and McLaren
facilities at Hatfield has also been achieved with Aston Martin
taking occupation in early April and McLaren taking occupation in
early May.
Financial highlights:
Six months Six months Change
ended ended
28 February 28 February
2019 2018
Revenue GBP308.3m GBP295.1m +4.5%
Underlying EBITDA* GBP7.7m GBP6.4m +20.3%
Underlying operating
profit* GBP6.1m GBP5.3m +15.1%
Underlying profit before
tax* GBP5.5m GBP4.8m +14.6%
Underlying net profit
margin* 1.79% 1.63% +16bps
Underlying earnings per
share* 4.51p 3.82p +18.1%
Non-recurring income/(expense)* GBP0.2m (GBP0.3m)
EBITDA GBP7.9m GBP6.1m +29.5%
Operating profit GBP6.4m GBP5.0m +28.0%
Profit before tax GBP5.8m GBP4.5m +28.8%
Net profit margin 1.87% 1.54% +33bps
Earnings per share 4.72p 3.61p +30.7%
*Underlying numbers exclude non-recurring net income of GBP0.2m
in 2019 relating to the profit on sale of Royal Wootton Bassett
less closure cost of Blackburn. In 2018 they exclude an expense of
GBP0.3m relating to the closure of businesses for the redevelopment
and refranchising of sites.
Underlying profit before tax was up 14.6% to GBP5.5m (H1 2018:
GBP4.8m) with the Group's net profit margin at 1.79%. Removing the
impact of the closed businesses and newly opened businesses gives a
like-for-like underlying profit before tax of GBP5.8m (H1 2018:
GBP5.6m).
Underlying operating profit increased 15.1% to GBP6.1m (H1 2018:
GBP5.3m), which resulted in an operating margin of 1.98% (H1 2018:
1.8%). Underlying earnings per share were 4.51p (H1 2018:
3.82p).
Gross profit increased by 1.9% to GBP35.8m (H1 2018: GBP35.2m)
with the new car division down GBP0.1m; used cars up GBP0.2m and
aftersales up GBP0.5m. The overall gross profit margin across the
Group showed a modest reduction over the previous period, as
expected, to 11.6% (H1 2018: 11.9%) as a result of the increased
revenue in the new and used car department from increased average
transaction prices.
The Board considers the net profit from sales of freehold
properties and expenses associated with the business closures,
acquisition fees and refranchising activity of GBP0.2m (H1 2018:
expense GBP0.3m) to be non-recurring.
Net finance expenses for the period increased to GBP0.62m (H1
2018: GBP0.46m), partly due to the increased level of borrowing
against the enhanced property assets and partly as a result of the
increased consignment stock costs. The tax charge for the period of
GBP1m represents an effective tax rate of 18.19% (H1 2018:
20.37%).
Balance sheet
Cambria has a robust balance sheet with net assets of GBP60.6m
(H1 2018: GBP53.2m), underpinned by GBP69.7m of freehold and long
leasehold property. At the balance sheet date, mortgages amounting
to GBP26.1m were drawn.
The Group had a net debt position as at 28 February 2019 of
GBP3.2m (H1 2018, net debt: GBP0.4m), reflecting gross debt of
GBP26.1m (H1 2018: GBP16.5m) and the cash position of GBP22.9m (H1
2018: GBP16.1m).
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 GBP10.9m (H1 2018: GBP5.8m). There was a positive
GBP4.6m movement in working capital in the period, GBP4.5m of which
was a result of strong new vehicle deposits ahead of the March
plate change month and increased service and warranty plan
reserves.
Cambria has continued to deliver on its property developments
over the past two years. During the period there has been GBP10.5m
of total capital expenditure incurred and a number of other
development projects initiated. The Group was able to secure the
freehold title to the land containing its Swindon Jaguar Land Rover
long leasehold property for GBP2.4m. This was the last of the
Group's properties held as long leasehold and therefore this asset
has been transferred to freehold properties. The Hatfield freehold
property development has incurred GBP5.9m in capital expenditure in
H1 along with GBP1.2m of fixtures, fittings, plant and machinery
costs. A further GBP1m was spent on completion of Tunbridge Wells,
delivery of a specialist used car site in Swindon and other
fixtures and fittings.
In December 2018, the Group sold the Freehold property in Royal
Wootton Bassett for GBP2.76m generating a non-recurring profit of
GBP0.4m. The site was the former Land Rover dealership, which has
been held for re-sale since the relocation of the operation to the
new Swindon Jaguar Land Rover dealership in July 2018.
To fund the capital expenditure in H1, the Group drew down GBP5m
against its existing Revolving Credit Facility.
A dividend of GBP0.75m, relating to the 2018 financial year, was
paid in January 2019 following approval at the Annual General
Meeting.
The total net cash inflow for the period was GBP7.4m (H1 2018:
outflow GBP6.9m).
Since the period end, the Group has completed on the purchase of
land on Hatfield Business Park to develop a secure compound and
preparation centre to support its Barnet and Hatfield operations.
The cost of the land and purchase costs was GBP3.6m. The Group has
also secured a development plot of land in Brentwood for GBP5m to
deliver dealership facilities for Jaguar Land Rover, Aston Martin,
Lamborghini and Bentley. The Group is working through the planning
process for delivery of this development with a view to taking
occupation in 2021. Over the next two years the Group intends to
complete the following freehold property investments; Solihull
Aston Martin at c.GBP5m and the Brentwood development outlined
above at c.GBP16m. The developments will be funded through a
combination of existing cash and draw down of the Revolving Credit
Facility.
Dividend
The Board is pleased to declare an interim dividend of 0.25p per
share (H1 2018: 0.25p per share). The dividend will be payable on
15 June 2019 to those shareholders on the register on 17 May 2019
(with an ex-dividend date of 16 May 2019). The Board intends to
maintain the dividend for the full financial year. However, as
previously stated, the Board will ensure that the payment of a
dividend does not detract from its primary aim to utilise available
funds to continue to grow the business through a buy-and-build
strategy.
Acquisitions
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
five 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
-- Lamborghini in Tunbridge Wells in November 2018
-- Peugeot in Warrington in October 2018
-- Suzuki in Maidstone in April 2019
-- Citroen in Oldham in May 2019
-- Vauxhall in Warrington in May 2019
Operations
Six months ended 28 February Six months ended 28 February
2019 2018
Revenue Revenue Gross Margin Revenue Revenue Gross Margin
mix profit mix profit
GBPm % GBPm % GBPm % GBPm %
New Vehicles 133.5 43.3 9.6 7.2 134.3 45.5 9.7 7.2
Used Vehicles 143.1 46.4 12.0 8.4 131.6 44.6 11.8 9.0
Aftersales 37.5 12.2 14.2 37.9 35.2 11.9 13.7 38.9
Internal sales (5.8) (1.9) (6.0) (2.0)
-------- -------- --------- ------- -------- -------- --------- -------
Total 308.3 100.0 35.8 11.6 295.1 100.0 35.2 11.9
Admin expenses (29.7) (29.9)
Operating Profit 6.1 5.3
New vehicles sales
H1 2019 H1 2018 Year-on-year
New units 3,432 4,478 (23.4 %)
--------- -------- -------------
New vehicle revenue decreased by 0.6% to GBP133.5m (H1 2018:
GBP134.3m) despite total new vehicle sales volumes being down
23.4%, illustrating the significant increase in average transaction
price of the units sold. The new vehicle gross profit margin was
7.2% (H1 2018: 7.2%) and there was only a GBP0.1m reduction in
gross profit. The average profit per unit sold increased by 30.6%,
the significant increase was as a result of the combination of
like-for-like increase in the profit of the retail units sold, a
reduction in the sale of low margin commercial and fleet units and
strengthening franchise mix from the businesses. On a like-for-like
basis, excluding the impact of the closed businesses and the new
businesses, our new volumes reduced by 19.4% with gross profit
reducing by GBP0.9m as profit per unit increased by 12.2% on a
like-for-like basis. Certain of the Group's volume manufacturer
franchises continue to be the largest cause of the reduction in
unit sales.
The Group's sale of new vehicles to private individuals was
16.3% lower year-on-year at 3,115 units (like-for-like down 10.8%),
the profit per unit for these sales improved by 21.6%
(like-for-like up 2.7%). New commercial vehicle sales transacted at
low profit per unit decreased by 60.8% from 498 to 195 units in the
period. The commercial vehicle fleet sales concluded in the prior
year had a dilutive effect on the Group's average profit per unit
in the prior year. New fleet unit vehicle sales decreased by 53.1%
to 122 units, but the average profit on these units improved by
77.5%.
The new car volume reduction that has been experienced reflects
a challenging and uncertain consumer outlook which is impacting the
new car market.
Used vehicle sales
H1 2019 H1 2018 Year-on-year
Used units 6,235 6,833 (8.8%)
-------- -------- -------------
We have delivered another good performance in used vehicle
sales. Revenues increased by 8.7% to GBP143.1m (H1 2018: GBP131.6m)
whilst the number of units sold decreased by 8.8% primarily as a
result of the closure of our loss-making Blackburn site and the
refranchising of volume businesses into High Luxury businesses. The
gross profit on used vehicles increased by 1.7% to GBP12m (H1 2018:
GBP11.8m), with the profit per unit sold increasing by 11.3%. On a
like-for-like basis, excluding the impact of the site closures and
new additions, our used volumes decreased 1.2% but was more than
offset by a profit per unit increase of 7.4%.
We have continued our focused strategy in the used car
department of increasing the efficiency with which we source,
prepare and market our used vehicles in order to drive the Group's
Velocity trading principles. This approach has produced pleasing
results, increasing the profitability of the used car department
from an already strong base.
Aftersales
H1 2019 H1 2018 Year-on-year
Aftersales
Revenue GBP37.5m GBP35.2m 6.5%
---------- ---------- -------------
Aftersales revenue increased by 6.5% year on year to GBP37.5m
(H1 2018: GBP35.2m), and the related gross profit increased to
GBP14.2m (H1 2018: GBP13.7m). Like-for-like aftersales revenue was
2.7% higher year on year, with gross profit up GBP0.2m. The
aftersales department contributed 39.7% 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 Guest Relationship Management programme. This is
Cambria's contact strategy, 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
During the period, as has been well documented, the new car
market was 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. During the period the total new car market was down
9.3%. The diesel segment of the market has been worst hit,
continuing its decline in market share, with diesel registrations
down another 29% in the period as a result of the continued
negative sentiment and inconsistent Government policy towards
diesel engine technology. Diesel engines now account for 29.6% of
the market compared to 42% in 2017.
The Board therefore remains cautious about the new car market as
there are a number of external factors that influence the sale of
cars in the UK. The Group continues to take action in the used car
and aftersales departments and this is helping to offset some of
the gross profit pressures in new car sales. The Group has also
added exciting new franchises that will make a positive and
potentially significant contribution to earnings once established
in their respective locations and we are pleased with the early
contributions from these developments.
The steps taken in relation to the National Minimum Wage,
increases in business rates, pension contributions, the
apprenticeship levy, debit and credit card charges are all creating
inflationary pressures in the administrative expenses of the
business. The Group has taken proactive steps to mitigate cost
increases and ensure that the cost base of the business is
controlled in line with the gross profit generation.
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.
Cambria has an experienced management team with a strong track
record and remains focused on delivering value for its associates,
Guests, brand partners and shareholders. As a result of the hard
work undertaken to further enhance the Group's portfolio and brand
mix over the period, we remain confident that Cambria will maintain
its momentum in the second half and the Board expects that
performance for the full financial year will be ahead of current
market expectations.
Mark Lavery
Chief Executive
9 May 2019
Consolidated Statement of Comprehensive Income
for the six months ended 28 February 2019
6 months to 6 months to 12 months to
Notes 28 February 29 February 31 August 2018
2019 2018
GBP000 GBP000 GBP000
Revenue 308,258 295,056 630,065
Cost of Sales (272,404) (259,863) (558,944)
Gross Profit 35,854 35,193 71,121
Administrative expenses (29,720) (29,936) (60,266)
Exceptional items 4 248 (263) (703)
Results from operating activities 6,382 4,994 10,152
Finance income 34 55 74
Finance expenses (651) (510) (1,102)
Net finance expenses (617) (455) (1,028)
---------------------------------- ------- ------------ ------------ ---------------
Profit before tax from operations
before non-
recurring (expense)/income 5,517 4,802 9,827
Non-recurring income/(expense) 4 248 (263) (703)
Profit before tax 5,765 4,539 9,124
Taxation 6 (1,049) (925) (1,853)
Profit and total comprehensive
income for the period 4,716 3,614 7,271
Basic and diluted earnings
per share 5 4.72p 3.61P 7.27p
Consolidated Statement of Changes in Equity
for the six months ended 28 February 2019
Share Share Retained Total
Capital premium earnings Equity
GBP000s GBP000s GBP000s GBP000s
For the 6 months ended 28
February 2019
Balance at 31 August 2018 10,000 799 45,828 56,627
Profit for the period - - 4,716 4,716
Dividend paid - - (750) (750)
Balance at 28 February 2019 10,000 799 49,794 60,593
For the 12 months ended
31 August 2018
Balance at 31 August 2017 10,000 799 39.557 50,356
Profit for the period - - 7,271 7,271
Dividend paid - - (1,000) (1,000)
Balance at 31 August 2018 10,000 799 45,828 56,627
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
Consolidated Statement of Financial Position
as at 28 February 2019
As at 28 February As at 28 February As at 31 August
2019 2018 2018
GBP000 GBP000 GBP000
Non-current assets
Property, Plant & equipment 75,894 59,705 67,050
Intangible assets 21,487 21,346 21,501
97,381 81,051 88,551
Current assets
Inventories 120,602 108,314 89,675
Trade and other receivables 16,791 13,282 11,442
Cash & Cash equivalents 22,895 16,145 15,517
Property assets classified as
held for resale 890 - 3,195
161,178 137,741 119,829
Total assets 258,559 218,792 208,380
Current liabilities
Trade and other payables (169,669) (147,172) (128,794)
Taxation (1,042) (864) (721)
(170,711) (148,036) (129,515)
Non-current liabilities
Other Interest Bearing loans
and borrowings (26,070) (16,536) (21,053)
Provisions (1,000) (1,000) (1,000)
Deferred tax liability (185) - (185)
(27,255) (17,536) (22,238)
Total liabilities (197,966) (165,572) (151,753)
Net assets 60,593 53,220 56,627
Equity attributable to equity
holders of the parent
Share capital 10,000 10,000 10,000
Share premium 799 799 799
Retained earnings 49,794 42,421 45,828
60,593 53,220 56,627
Consolidated Cash flow statement
for the six months ended 28 February 2019
6 months to 6 months to 12 months to
28 February 28 February 31 August 2018
2019 2018
GBP000 GBP000 GBP000
Cash flows from operating activities
Profit for the period 4,716 3,614 7,271
Adjustments for:
Depreciation, amortisation and
impairment 1,521 1,114 2,481
Finance income (34) (55) (74)
Finance expense 651 510 1,102
Non-recurring (Profit)/loss
on sale of property, plant and
equipment (414) 4 74
Taxation 1,049 925 1,853
Non-recurring expenses 166 263 703
7,655 6,375 13, 410
Decrease/(Increase) in trade
and other receivables (5,349) (854) 986
(Increase) / decrease in inventories (30,927) (2,895) 15,744
Increase in trade and other
payables 40,875 4,633 (13,704)
(Decrease)/increase in provisions - - -
12,254 7,259 16,436
Interest paid (437) (361) (785)
Taxation paid (728) (862) (1,790)
Non-recurring income/(expenses) (166) (263) (703)
Net cash flow from operating
activities 10,923 5,773 (13158)
Cash flows from investing activities
Interest received 34 55 74
Proceeds from sale of property,
plant and equipment 2,874 - 136
Acquisition/purchase of property,
plant and equipment (10,506) (11,483) (23,750)
Net cash flow from investing
activities (7,598) (11,428) (23,540)
Cash flows from financing activities
Proceeds for new loan 5,017 - 4,500
Interest paid (214) (149) (317)
Repayment of borrowings - (347) (330)
Dividend paid (750) (750) (1,000)
Net cash (outflow)/inflow from
financing activities 4,053 (1,246) 2,853
Net increase/(decrease) in cash
and cash equivalents 7,378 (6,901) (7,529)
Cash and cash equivalents at
start of period 15,517 23,046 23,046
Cash and cash equivalents at
end of period 22,895 16,145 15,517
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 2019 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 2019
have neither been audited nor reviewed by the auditors. The
financial information for the year ended 31 August 2018 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 2018 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
2019 2018
Revenue Revenue Gross Margin Revenue Revenue Gross Margin
mix profit mix profit
GBPm % GBPm % GBPm % GBPm %
New Vehicles 133.5 43.3 9.6 7.2 134.3 45.5 9.7 7.2
Used Vehicles 143.1 46.4 12.0 8.4 131.6 44.6 11.8 9.0
Aftersales 37.5 12.2 14.2 37.9 35.2 11.9 13.7 38.9
Internal sales (5.8) (1.9) (6.0) (2.0)
-------- -------- --------- ------- -------- -------- --------- -------
Total 308.3 100.0 35.8 11.6 295.1 100.0 35.2 11.9
Admin expenses (29.7) (29.9)
Operating Profit 6.1 5.3
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
2019 2018
GBP000 GBP000
Profit Before Tax 5,765 4,539
Net finance expense 617 455
Depreciation 1,521 1,114
EBITDA 7,903 6,108
Non-recurring Expenses/(Income) (248) 263
Underlying EBITDA 7,655 6,371
4 Non-recurring Income / (Expense)
6 months 6 months to
to 28 February 28 February
2019 GBP000 2018
GBP000
Site closures and refranchising
cost (166) (263)
Profit on sale of Freehold 414 -
property
Net non-recurring income
/ (expense) 248 (263)
5 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 2018.
6 months to 6 months to Year ended
28 28 February 31
February 2019 2018 August 2018
GBP'000 GBP'000 GBP'000
Profit attributable to shareholders 4,716 3,614 7,271
Non-recurring income and expenses (248) 263 703
Tax on adjustments (at 18.19
%) (2017: 20.37%) 45 (53) (134)
Adjusted profit attributable
to equity shareholders 4,513 3,824 7,840
Adjusted number of share in
issue ('000s) 100,000 100,000 100,000
Basic earnings per share 4.72p 3.61p 7.27p
Adjusted earnings per share 4.51p 3.82p 7.84p
6 Taxation
The tax charge for the six months ended 28 February 2019 has
been provided at the effective rate of 18.19% (H1 2018:
20.37%).
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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