F&I Management & Training

Cambria Automobiles has signalled its intention to continue expanding after a fourth successive year of increased profits. The group told shareholders its underlying profit before tax to the end of August grew by 16.7% to £4.9m, up from £4.2m in the previous year.

Chief executive, Mark Lavery, said: “I am pleased with the performance achieved by the group against the backdrop of challenging new and used car markets. We continue to use this market weakness to drive forward our buy-and-build strategy, utilising our strong balance sheet.”

The company has net assets at £19.5m under-pinned by £22.6m of freehold and long lease-hold property and has also negotiated an additional £5m, three year revolving credit facility to finance further acquisitions.

Strong cash flow during the year ensured net debt has been reduced to £1m from £4.4m , with gearing at 5.2% and the company was able to declare a maiden dividend of 3p a share.

Cambria has seen growth in used and aftersales with used car volumes increased 1% year on year and service hours increased 2% year on year but new car sales were down 11% year-on-year. The company said this was due to the decline in private registrations and the end of the scrappage scheme.

Total revenue decreased 4.8% year on year to £373.3m but the group delivered an improved gross margin which, combined with tight cost management, resulted in the improvement in net profit.

During the period, the group continued to integrate the ten additional businesses acquired in the previous financial year, six of which had been acquired from an administrator. On September 1 it completed the acquisition of its first Vauxhall dealership and Mr Lavery said he intends to make Vauxhall a primary brand partner as other opportunities arise.

The acquisition was the group’s eighth corporate transaction and takes the group to 27 locations representing 39 franchised outlets.

DATED: 28.11.11

FEED: ARN