Despite better data from the Society of Motor Manufacturers & Traders (SMMT) on new car sales in April, these results from Aim-traded Cambria Automobiles (CAMB) - which only track the six months up to the end of February - don’t make for cheerful reading.
Half-year revenues contracted appreciably following a sustained decline in new and used car sales volumes (down 14 per cent and 0.8 per cent, respectively, on a like-for-like basis) and while profit per unit did improve as a result of the sales mix, underlying pre-tax profits still fell by 14.3 per cent to £4.8m as margins faltered. Thankfully, the balance sheet is in good nick, with practically no net debt and net assets of £53m backed by freehold and long leasehold property. This degree of 'insulation', along with positive operational cash flows, has enabled the board to maintain the half-year pay rate.
The group clearly thinks luxury brands offer a more defensive strategy, even though upmarket sales aren't immune to cyclical effects. In January, it acquired the trade and assets of Bentley businesses in Essex and Kent, and added a Lamborghini franchise in Chelmsford. It has also opened an inaugural McLaren dealership in Hatfield.
Bloomberg consensus gives EPS of 7.5p for the year ending August 2018, moving up to 7.9p in FY2019.
| CAMBRIA AUTOMOBILES (CAMB) | ||||
| ORD PRICE: | 59p | MARKET VALUE: | £59m | |
| TOUCH: | 57-60p | 12-MONTH HIGH: | 76p | LOW: 58p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 7 | |
| NET ASSET VALUE: | 53p* | NET DEBT: | 0.7% | |
| Half-year to 28 Feb | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 | 309 | 5.5 | 4.3 | 0.25 |
| 2018 | 295 | 4.5 | 3.6 | 0.25 |
| % change | -5 | -17 | -17 | - |
| Ex-div: | 17 May | |||
| Payment: | 15 Jun | |||
| *Includes intangible assets of £21.3m, or 21p a share | ||||
