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Cambria trading in line across first five months, still down year-on-year
AIM-quoted vehicle retailer Cambria Automobiles traded in line with its board's expectations during the first five months its current financial year, "albeit behind the corresponding period in 2016/17" on both a total and like-for-like basis.
A weaker new car market applied pressure to sales volumes in the period, although extraordinary earnings throughout the 2017 calendar year helped to enhance Cambria's average group margins across the five-month period, with new vehicle unit sales dropping 16.5%, or 14.6% on a like-for-like basis.
However, gross profit per retail unit improved partially, helping to offset much of the reduced volume.
Used vehicle sales continued to perform well on a like-for-like basis, with sales in line with the same period in the prior year, albeit with total used unit sales falling 6.8% year-on-year as a result of the lost units from site closures and refranchising activities carried out to enhance Cambria's portfolio.
Overall, Cambria said the firm's aftersales operations had delivered "a good performance", with revenue increasing 0.6%, or 6.1% on a like-for-like basis, and profitability advancing 2.1% year-on-year.
Management said, "The board continues to remain cautious about the new car market. The government's clean air policy narrative and the inconsistent messaging around the forward-looking position on diesel engines has created a reduction in consumer demand for diesel vehicles which formed 42% of the new car market in 2017 and 47.7% in 2016."
"The general uncertainty in the consumer environment remains, as does the pressure that vehicle manufacturers are under as a result of the current Sterling exchange rate," it added.
As of 0920 GMT, shares had dialled back 2.46% to 61.45p.