Cambria Automobiles plc has reported that it is 'maintaining momentum' following its success in the last financial year, with dealer acquisitions and rising sales bolstering its financial outlook.
The group’s board reported ahead of its annual general meeting that the business’ trading performance in the first four months of the current financial year had been substantially ahead of the corresponding period in 2014/15.
Looking ahead a statement issued by the group added: “The board expects Cambria’s interim results for the six months to February, 28 2016 to be significantly ahead of the corresponding period of 2014/15 and views the outlook for the remainder of the financial year with confidence.”
Cambria’s trading update stated that trading in the first four months of the financial year had been “substantially ahead of the corresponding period in 2014/15” on both a total and a like-for-like basis.
New vehicle unit sales were up 4.0% (like-for-like down 1.2%), with gross profit per retail unit improving.
Used vehicle sales also performed well, with unit sales 4.7% (like-for-like 2.9%) ahead of the same period in the prior year and gross profit per unit continuing to increase.
Growth in the group’s aftersales operations has also continued, with profitability up by 3.1% (like-for-like in line) year-on-year.
Commenting on the success of the group’s most recent acquisitions, the statement added: “The Swindon Land Rover business that was acquired on 30 April 2015 has continued to perform in line with expectations.
“This acquisition added the second Land Rover dealership to the group, and the board remains confident about its potential.
“On 8 January 2016, the board was pleased to announce the acquisition of its third Land Rover dealership in Welwyn Garden City.
“This business will be immediately earnings enhancing in the second half of the 2015/16 financial year.”
Head of research at investment bank Zeus Capital, Mike Allen, said: “Cambria has released a solid trading update.
“The group continues to trade in line with expectations with a robust performance across the group.
"Given the company’s track record of earnings outperformance, above average return on capital employed and growth potential, we continue to believe the shares are undervalued and following the acquisition announced earlier this week, are comfortable with a valuation approaching 130p per share.”