Acquisition-hungry Swindon car sales group Cambria expects to overtake last year’s financial results

July 8, 2014
By

Swindon-based car dealership group Cambria has bought its first Land Rover franchise and added to its Jaguar showroom portfolio by snapping up a North London site for more than £10m.

Cambria also this week told shareholders in a London Stock Exchange update that it continued to perform well in a strong new car market and remained on track to at least match market expectations in its current financial year.

In March the group, whose 29 dealerships sell 18 car marques, said it expected this year’s financial results to be ‘significantly ahead’ of the previous year.

The acquisition is a single dealership in Barnet which sells Land Rovers and Jaguars. It was bought from Hadley Green Garages, which is owned by Lookers, for a total cash consideration of £10.47m made up of £3.75m for the freehold property, £5m goodwill, £1.26m for used cars, parts stock, demonstrator vehicles, accruals and prepayments and £460,000 for fixed assets.

Cambria will draw down a new term loan to pay for the freehold property with the balance from its existing financing facilities.

Cambria estimates the dealership made a £700,000 pre-tax profits in the year to December 31, 2013 on revenues of £46m.  It expects it to be “significantly earnings enhancing” in the next financial year 2014/15.

The group has also recently added a second Jeep franchise, which will sit alongside its Fiat business in Oldham, further strengthening its relationship with the Italian car giant.

Chief executive Mark Lavery said: “Following our success in turning around underperforming dealerships, it is very pleasing to announce the acquisition of our first Land Rover and the addition of a sixth Jaguar dealership, which are expected to be rapidly earnings enhancing and strengthen our brand portfolio mix.”

Cambria last year invested £500,000 in refurbishing its Swindon Motor Park.

 

 

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