Cambria Automobiles announces strong start to new financial year

Total revenue for the year fell 5.57 per cent to £352.5m at UK motor dealer group Cambria Automobiles, according to the group's full year results published on Friday.

In the financial year to August 31st 2012, underlying profit before tax at the group fell to £3.1m, compared to £4.9m in the previous year. This was in line with the board's expectation, reflecting weaker new car volume and profitability, particularly in the first half of the year.

Continuing businesses made an underlying profit before tax of £3.5m with the acquired dealership making a loss of £0.22m and disposed dealership making a loss of £0.14m.

A rationalisation programme was implemented in the first quarter with a one-off cost of £0.3m.

The group posted net assets worth £21.5m and a balance sheet position with £0.3m of goodwill. The underlying return on shareholders' funds was 13.5% and the group made an announcement of a dividend for the year of 0.3p per share, versus none last year.

The firm has also announced its intention to maintain a progressive dividend policy.

Commenting on the results, Mark Lavery, Chief Executive said: "Cambria has performed in line with our expectations and, after a particularly difficult first half, has produced a far better second half. The cost rationalisation programme carried out in the first half is now broadly completed and while we continue to look at areas where cost saving can be made, we are in a leaner position than at the same point last year."

He added: "The group has had a strong start to the current financial year, ahead of business plan and significantly ahead of previous year. New car volumes are 8.6% ahead of last year with improved margin. I am pleased to report that our Guest Connect programme is in its second year of operation and it is having a significant effect on aftersales profit contribution. I remain confident that the group will deliver an improved performance in our 2013 financial year. "

RF