First-half trading might have been much better for Cambria Automobiles (CAMB) than analysts - or even the company - expected, but it's clear that reservations about the car market persist. Despite a 4.6 per cent decline in new car unit sales during the first half, a better sales mix, lower interest charges and a strong performance from the aftersales division all helped the group come out on top. Chief executive Mark Lavery said it was important to realise that fewer cars sold "doesn't always mean you make less money".
But Matthew McEachran, an analyst at brokerage N+1 Singer, said that despite the underlying pre-tax profit rise of more than 20 per cent, and a 6 per cent upgrade to annual forecasts, "market uncertainties" could see a profit contraction during the second half. Even Mr Lavery admits he's cautious about the consumer picture this year, but he hopes the result from the impending UK general election will give "all industries a degree of certainty". If a consumer downturn happens, Mr Lavery said the company's balance sheet is in "good shape" to take advantage of possible M&A opportunities.
Analysts at N+1 Singer expect adjusted pre-tax profits of £11m for the year ending August 2017, giving EPS of 8.7p, up from £10.6m and 8.3p in FY2016.
| CAMBRIA AUTOMOBILES (CAMB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 73p | MARKET VALUE: | £73m | |
| TOUCH: | 71-75p | 12-MONTH HIGH: | 82p | LOW: 54p |
| DIVIDEND YIELD: | 1.3% | PE RATIO: | 8 | |
| NET ASSET VALUE: | 46p | NET CASH: | £3.3m | |
| Half-year to 28 Feb | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2016 | 278 | 5.7 | 4.6 | 0.20 |
| 2017 | 309 | 5.5 | 4.3 | 0.25 |
| % change | +11 | -4 | -5 | +25 |
Ex-div: 18 May Payment: 16 Jun | ||||
