Saturday, June 12, 2010
Cambria goes on the acquisition trail
AM100 dealer group Cambria Automobiles hopes to complete two further acquisitions this summer.
The acquisitions would take the number of takeovers completed in the group’s current financial year, which closes at the end of August, to a total of five. Both targets are multiple site businesses.
In April the group floated on the Alternative Investment Market and has attracted shareholders with its ‘buy and build’ strategy, which entails taking over franchised dealerships which Cambria can improve exponentially by introducing its processes and management systems.
It has already proven the strategy works – the £175.9m revenue made in the six months to the end of February was a 60% improvement on the corresponding period last year, while net profit margin was 1.41%. Total new car sales rose 59% from 2,697 units to 4,290 units, including 1,297 scrappage scheme sales.
Chief executive Mark Lavery told AM: “We’re very pleased about the first half of our financial year and are optimistic about the second half.”
Lavery is proud that Cambria remained in the black even during the pre-scrappage period of late 2008/early 2009, when the UK’s new car market collapsed and used car prices plunged. He describes that period as “automotive Armageddon”.
He added: “We’ve demonstrated that we still make a profit in the most difficult of times. The next six months for the industry will be challenging but from our point of view we’re confident that our model is robust.”
DATED: 12.06.10
FEED: AM
