Cambria Automobiles reports strong second half trading

Trading at Cambia Automobiles during the first 11 months of the financial year was substantially ahead last year´s tally.

In a pre-close trading update for the year to 31 August, the motor dealer said new vehicle sales volumes were up 11%, compared to the same period last year, as gross profit per retail unit increased year-on-year in both like-for-like and total terms.

Used vehicle sales increased by 4.4%, ahead of the same period in the prior year. Gross profit per unit continued to increase year-on-year which contributed to a rise in profit from that part of the business. After sales operations continued to rise too, sporting growth of 3.7% year-on-year.

The Swindon Land Rover business, which the company bought in April 2015, performed in line with expectations and the Welwyn Garden City Land Rover dealership, which was bought in January 2016, is integrating.

The Woodford Jaguar and Land Rover business bought in July is also being integrated into and the company is confident it will yield a positive contribution in the next financial year.

The company’s third Aston Martin dealership in Solihull is fully operational and the AIM-listed outfit said its forward order bank is building.

Chief executive Mark Lavery, said: "The group has performed well during the course of the financial year, delivering growth in the operating business and adding on earnings accretive acquisitions. The mix of franchises has been enriched in line with our growth strategy and the business is well placed to build on the momentum generated this year. The September order bank is building well and this puts us in a strong position heading into the important plate change month.”

The company also appointed Tim Duckers as managing director of the motor division. Duckers has been with the company since 2008 and has over 20 years of motor retail operating experience.

Lavery added: “I am very pleased that Tim has accepted our offer for him to join the board of directors and look forward to him supporting myself and the team as we continue to grow the group further along the next exciting phase of its development."

Following a strong second half thus far, coming as it did on the back of a "good" first half, management expressed confidence in its ability to meet revised market expectations for the full-year.

"The important September plate change order book is building well. Stock is trading on PE of 8x August 2016 falling to 6.9x 2017 so still very cheap as the UK consumer continues to be confident," Jamie Constable at N+1 Singer said in a note sent to clients.

Shares in Cambria Automobiles were up 2.99% to 69p at 1124 BST.