Swindon-based franchised motor retailer Cambria has restructured its dealership estate with the acquisition of a Land Rover franchise in Hertfordshire and the sale of a Jaguar showroom in Devon.
The ambitious group, which last year bought TH White’s Royal Wootton Bassett Land Rover dealership for £7.56m, snapped up the Land Rover franchise in Welwyn Garden City from Jardine Motors Group for a total cash consideration of £10.8m. Meanwhile, it sold the Grange Jaguar franchise in Exeter to Helston Garages for around £1.3m. 
Shares in the group, which was established 10 years ago, leapt by nearly 5% this morning when its latest move was announced to the London Stock Exchange, taking them to 87p – their highest since the group floated on the exchange’s Alternative Investment Market (AIM) in 2010.
Cambria’s fast-paced growth in recent years has been driven by a series of strategic deals as it accelerates towards its ambition of creating a £1bn-turnover, balanced independent UK motor retail group through a self-funded ‘buy-and build’ strategy, focused on turnaround opportunities.
Its 29 dealerships represent 44 franchises and 17 brands across the UK and trade under local brand names such as County Motor Works, Grange, Invicta and Motorparks – including Swindon Motor Park.
Its new Welwyn dealership is around two miles from the group’s Jaguar and Aston Martin franchises in the same town. The acquisition means Cambria now operates three Land Rover dealerships under the Grange trading name.
The price is made up of £10m in goodwill, £100,000 for fixed assets, with the remaining £700,000 for used vehicles, parts stock and apportionments. The acquisition is being funded from the group’s newly refinanced banking facilities.
The dealership made an annual unaudited pre-tax profit of £2.5m on revenue of £54m, according to its management accounts 2015. Cambria said it anticipated the acquisition would enhance its earnings in the second half of the financial year to August 31, 2016.
The Grange Jaguar franchise in Exeter has been sold to Helston Garages for around £1.3m – subject to final adjustment and preparation of completion accounts – and includes £1.2m for goodwill.
Cambria said it expected the deal would complete in the coming few weeks and further announcements will be made at the appropriate time.
The group is simultaneously closing its Aston Martin boutique in the same premises to facilitate the transaction.
The closure is in line with the Aston Martin franchise network restructuring strategy, and the group said it continued to work closely with Aston Martin to enhance its partnership with the brand and it anticipates adding another Aston Martin franchise to its portfolio in the short-to-medium term.
The combined Jaguar and Aston Martin franchises at the Exeter dealership made a positive net profit contribution to the group of £500,000 in the 2015 financial year on revenue of £20m.
It said the acquisition and disposal were in line with the Jaguar Land Rover strategy that both the brands should be represented by the same dealer in a given franchise territory.
Cambria chief executive officer Mark Lavery said: “We are pleased to have acquired this Land Rover franchise in Welwyn Garden City, which complements the group’s Jaguar and Aston Martin site nearby.
“The acquisition represents further delivery of our strategy to develop our portfolio of premium and high luxury franchises, while acquiring immediately earnings enhancing businesses.
“The disposal of our Jaguar franchise in Exeter is in line with the group’s reorganisation to ensure compliance with Jaguar Land Rover’s network strategy. The closure of our Aston Martin boutique is in line with Aston Martin’s network restructuring and we remain excited about the potential to continue to develop our partnership with Aston Martin in the short to medium term.”
