Shares in high-growth Swindon-based franchised motor retailer Cambria plunged by more than 10% today after its chief executive said it was “cautious” about trading in the coming year.
Mark Lavery’s comments came in an otherwise strong set of annual results for the group, which this year celebrated 10 years in business. 
During that period it has made 13 acquisitions, expanding into a national chain of dealerships. Growth continued in the year to August 31, with pre-tax profits racing ahead by 53.2% to £11.8m on sales up 17.3% at £614.2m.
New vehicle sales were up 9.9% with a 13.2% increase in profit per unit, while sales of used vehicle rose 5.2% with an 8.1% improvement in profit per unit.
But it was the outlook from Mr Lavery and his comments that the UK car market is in for a difficult period that unsettled investors and triggered the share price collapse.
While saying it was too early to assess the impact of the EU referendum on the automotive retail sector, he referenced the latest forecasts from industry body the SMMT for new car registrations in 2017 that show a 5% reduction on the 2016 closing forecast.
He also said from April to October there had been a 2.7% year-on-year reduction in the private segment of the new car market.
But while Cambria’s sales during the important plate change month of September were in line with expectations, October trading showed “some softening” in new car margins.
He added: “Whilst the 2016 financial year ended well, because of the uncertainty in the economic outlook, the board is cautious about trading in the coming year.
“The formative 10 years of the group have laid solid foundations with an extremely capable management team and high-quality digitised data systems.
“In uncertain times, the quality of people and systems is absolutely critical and the board is confident that Cambria is well placed to take advantage of any opportunities afforded to the group.”
Two years ago the group decided to drive sales of prestige and high-quality cars, buying a Jaguar and Land Rover dealership in Barnet, followed by the acquisition of Swindon Land Rover for a total consideration of £7.6m including £2.3m of freehold property.
It continued to add Land Rover, Jaguar and Aston Martin dealership but also disposed of a number of dealerships including the Jaguar and Aston Martin showrooms in Exeter and a Jaguar franchise in Croydon. It also closed its Swindon Citroen new car sales franchise – the group’s only dealership for the French marque.
Following these moves the group now has 31 dealerships, representing 46 franchises and 17 brands, which it called “a well-balanced brand portfolio spanning the high luxury, premium and volume segments.” These include the Invicta and Motorpark brands – including Swindon Motor Park.
By the close of the London Stock Exchange, Cambria’s shares were down by 10.29%, or 7p, at 61p.
