25 November 2020

Cambria has claimed a resilient performance in its annual results for the year to 31 August 2020 despite the impact of Covid-19 and the closure of showrooms in mid-March to the start of June.

The group finished its financial year with a revenue figure down 20.3% at £524 million and a profit before tax down 18.4% at £10.2m.

Mark Lavery, CEO Cambria

Commenting on the results, CEO Mark Lavery, said: “The unprecedented and ongoing effects of the Covid-19 pandemic have put the Group through the most challenging period in its history, though against this backdrop the business has demonstrated its resilience. We endured the material and devastating impact of Lockdown 1 (24 March until 31 May), followed by the bounce back and pent up demand experienced during the summer months, which went some way to offsetting the damage the pandemic inflicted during that time.

“The performance in the first half of the financial year to 29 February 2020 was unaffected by the pandemic and we had traded strongly during this period. In our Interim Results published on 6 May 2020 we highlighted that the impact of the pandemic and that the national lockdown would have a material negative impact on the financial performance in the second half and particularly during the March to May period, the year-on-year negative variance was significant.

“The dramatic economic impact of the pandemic forced the Board to consider all its operating procedures and Guest handling processes. We took decisive action to protect the Group and to make it leaner, more flexible and agile in preparation for a very different market place and society once we emerged from the crisis.

“At the time of writing, we are in the second enforced national lockdown and whilst our leaner, more flexible and more agile business is better equipped to deal with the challenges of a lockdown on our industry, it is still having a significant impact on our day to day trading.”

Financial highlights

• Strong balance sheet – net assets £71.7m (2019: £65.6m)
• Strong operational cash flows, net cash flow from operating activities of £16.4m (2019: £22.2m)
• Net cash of £3.5m (31 August 2019: net debt £3.8m), supported by the UK Government’s Coronavirus Job Retention Scheme and Business Rates relief measures
• Continued disciplined investment in freehold property portfolio during year, deploying £4.2m in capital expenditure
• Underlying Return on Equity at 13.1% (2018/19: 16.0%)

Operational Headlines

• New unit sales to retail customers reduced 25.2% (like-for-like down 25.5%), and gross profit reduced despite the 2.7% (like-for-like up 1.5%) increase in profit per unit
• Lower margin Fleet and Commercial units reduced 33.3% and 39.7% respectively
• Overall unit sales of new vehicles reduced by 26.3% (like-for-like down 26.5%)
• Used vehicle unit sales down 20.9% following March lockdown (like-for like down 21.3%), partially offset by a 7.7% (like-for like 6.4%) improvement in profit per unit
• Aftersales Revenue reduced 14.7% (like-for-like down 15.3%)
• Group’s entry into the Scottish market with the acquisition of an Aston Martin dealership and its Freehold Property in Edinburgh taking the Group to four Aston Martin dealerships
• Strengthening of High Luxury Segment with acquisition of Rolls-Royce Motor Cars dealership in leasehold premises in Edinburgh, welcoming this prestigious brand into the portfolio
• Refranchising of Volvo Preston into Alfa Romeo and Jeep to create FCA Brand centre in Preston
• Completion of land purchase in Solihull for the development of Aston Martin Birmingham site relocation

Tags: Cambria