F&I Management & Training

Cambria Automobiles has reported record results for the year to 31 August 2011 on decreased revenues but improved profit before tax.

Revenues dropped 4.8 per cent year-on-year to £373.3m with profit before tax rising 16.7 per cent from £4.2m to £4.9m, the group’s fourth successive year of growth.

Cambria, which is an AIM-listed group, blames the removal of the scrappage scheme for the fall in turnover.

Mark Lavery (pictured), Cambria's chief executive said the results showed another strong year’s performance for the group in a difficult market with the business reaping the benefits of cost control.

“While the ending of the government sponsored scrappage scheme reduced revenues, the cost reduction actions taken during the year more than offset the reduction in revenues,” he said.

“This is the fourth successive year in which Cambria has delivered significant earnings growth and high level of return on shareholders’ funds,” he said.

Like-for-like new car volumes, excluding scrappage sales from the previous year, were up 9 per cent which Lavery attributed to growth in its premium franchises. He confirmed this is an area of the business he plans to grow through acquisition.

“Yes we are looking. There is an opportunity in premium and upper premium,” he said.

Cambria currently represents Aston Martin and Jaguar in upper-premium and Alfa Romeo, Honda and Volvo in premium.

Lavery said the group, which was founded in 2006 after the acquisition of Sudbury Motors, is still on course to be a £1bn turnover business although the original five year time scale has been extended. He also said the outlook for car retailers in 2012 remains challenging.

“There’s pressure from exchange rates and inflation. It’s challenging. This is the new business as usual,” he said.

The south-east based group jumped 10 places in the recently published Motor Trader top 200 which now rates it at number 18.

Cambria’s financial highlights (year ending 31 August 2011)

• Fourth successive year of increased underlying PBT, achieving £4.9m compared with the previous year’s £4.2m
• Total revenue decreased 4.8% year-on-year to £373.3m
• Gross profit decreased by 1% year-on-year
• EBITDA increased by 17.9% to £7.2m Underlying earnings per share increased to 3.63p from 3.06p
• Group net assets at £19.5m underpinned by £22.6m of freehold and long lease-hold property
• £0.3m of goodwill on balance sheet
• Net debt reduced to £1m from £4.4m, gearing at 5.2%
• Underlying return on shareholders’ funds of 22.7 %
• Maiden dividend of 0.3p per share