10:12 am, September 5, 2017
CAMBRIA Automobiles has reported new car sales are down but aftersales revenue has increased in its preliminary trading results, announced today.
The figures, for the first 11 months of the current financial year, are in line with the board’s expectations, with the company having gained momentum from its strong results in the last financial year, with the numbers for the last 11 months staying ahead of the corresponding period in the previous year, both in total and on a like-for-like basis.
The board is erring on the side of caution with regards to consumer outlook and trading environment, as the post-March period has been challenging, especially in relation to new car sales.
Cambria’s performance was strong in H1 and this continued through the crucial number plate change in March. However, market conditions caused the results to weaken from April onwards.
Used vehicles sales have done well and although the closure of Swindon Motor Park caused a 5.5 per cent drop in unit sales, this has been countered by substantial profit retention.
Aftersales operations increased revenue by 8.4 per cent, with profitability going up by 2.2 per cent. Performance did take a hit when the Welwyn City Jaguar and Aston Martin workshop fell victim to a fire in October. Repairs were completed in June and normal operation has been resumed.
New car sales dropped by 12.2 per cent, which was attributed to disruption caused by building works at the Barnet Jaguar Land Rover site, as well as reduced unit sales from some manufacturers. The September period is expected to bring a wave of new car sales.
Cambria is also constructing a variety of new sites, including a state-of-the-art facility at Barnet Jaguar Land Rover, a JLR “arch concept” in Swindon and a development of the JLR & Aston Martin site in Hatfield.
Mark Lavery, chief executive of Cambria Automobiles, said: ‘The Group has delivered a solid performance in the 11 months to 31 July 2017, and I am particularly pleased with the increases in profit per unit in both new and used vehicles.
‘We have had a busy year, having completed the substantial building project at our Barnet Jaguar Land Rover site, and have recently begun construction of our new Jaguar Land Rover Arch concept site in Swindon.
‘The Board continues to believe that there will be pressure on new car volumes and margins in 2017 and 2018 with the current macroeconomic uncertainty that prevails.
‘However, the Group’s trading performance in the first 11 months indicates that trading is in line with market expectations for the full year.’
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