Swindon-based franchised motor retailer Cambria has repeated its warning that new car sales could slow this year as the weak pound puts the skids under economic growth.
But the group, which owns Swindon Motor Park in Dorcan and Grange Swindon Land Rover in Royal Wootton Bassett, said it believes it will continue to find opportunities in the challenging market and expects to hit its financial targets for this year. 
Shares in Cambria slumped by more than 10% last November when it first warned of a softening of the new car market – even though its own growth had continued and it had not suffered any impact from the weakening market.
In a trading update released to the London Stock Exchange ahead of today’s Annual General Meeting, the group its trading performance in the first three months of the current financial year was ahead of the equivalent period last year on both a total and like-for-like basis.
However, it did say that after a strong September trading period, there was some pressure on new car margins in October and on new car volumes in November.
As a result, new car sales for the first quarter were down 0.7% – down 9.4% on a like-for-like basis – although gross profit per unit improved. Used vehicle sales rose by 3.6% – like-for-like 2.5% – with gross profit per unit also increasing.
Revenue in its aftersales operations increased by 13.1% – like-for-like up 2.9% – with profitability up by 6% year on year. However, this was down 1.5% on a like-for-like basis partly due to a fire in October at its Welwyn Garden City Jaguar and Aston Martin workshop.
The group said in the statement: “The board continues to believe that there may be some pressure on new car volumes and margins in 2017 as a result of the uncertainty in the economy and the foreign exchange volatility witnessed over the past few months.
“However, the board also believes that the group’s robust balance sheet and proven management team ensure it remains well placed to take advantage of any opportunities that may arise. The group’s trading performance in the first quarter means that it is trading in line with market expectations for the full year.”
The group, now in its 11th year of trading, has built a portfolio of 31 luxury, premium and volume dealerships, representing 46 franchises and 17 brands from the North West to Kent and selling marques from Aston Martin and Jaguar to Ford, Honda, Seat and Vauxhall.
