Swindon-based franchised motor retailer Cambria Automobiles today said its ‘buy-and-build strategy’ had paid off as it unveiled a strong set of annual results.
The group, which has accelerated from a standing start in 2006 to own 27 dealerships across the UK, reported underlying pre-tax profits up 32% at £4.1m – ahead of its own expectations. These were achieved on revenue up 12% at £395.8m during what chief executive Mark Lavery called “exceptionally tough trading conditions”.
New vehicle sales during the year to August 31 rose by 16.1% – ahead of the 9.8% market growth. It described the sales increase of used vehicle as ‘modest’ although there was a 6.5% improvement in profit per unit.
After sales revenue and gross profit accounted for 14.3% and 45.1% of group revenue and gross profit respectively.
Highlights of the year included the acquisition of County Motor Works and freehold property, which added a further Vauxhall and Alfa Romeo dealership and the group’s first Chrysler Jeep dealership
It also invested £500,000 in refurbishing its Swindon Motor Park.
Chief executive Mark Lavery said: “Our buy-and-build strategy to turn around underperforming businesses, executed under exceptionally tough trading conditions, has proved very successful.
“Our strong cash generation provides us with the balance sheet to acquire instantly earnings enhancing businesses, which will strengthen our portfolio mix and help to fulfil our national ambitions to create a group with annual revenues of over £1bn.”
He said performance in the first two months of the new financial year was ahead of plan.
Cambria’s 27 dealerships represent 42 franchises and 17 brands.
