Cambria warns of Brexit uncertainty as profits tumble
Source - SMW
Motor retailer Cambria said Wednesday annual profits fell by nearly a fifth as revenue slipped amid struggles to sell new and used vehicles.
For the 12 months ended 31 August, pre-tax profits fell 19.3% to £9.1m from £11.3m a year earlier and revenue slipped 2.2% to £630m.
New vehicle unit sales fell 17.2% amid a wider softening seen in the market, with the total financial impact slightly offset by a 1.2% increase in profit per unit as a result of the premium mix shift, the company said.
Used vehicle unit sales fell 6.9% following site closures, but this was offset by a 11.6% improvement in profit per unit.
Profits were weighed down by a £0.7m hit from refranchising activity and site closures. Eight of the Group's 42 franchised outlets either changed franchises or closed during the year, the company said.
The company proposed a final dividend of 0.75p, maintaining the full year dividend at 1.0p a share.
Cambria warned of uncertainty concerning the impact of Brexit, conceding that there was 'a lack of clarity on how any free trade agreements will be negotiated and there continue to be major implications for the Sterling exchange rate and other fiscal levers.'
'We are unclear as to how these factors will impact the UK motor trade although both a weaker Sterling and any tariffs would undoubtedly have a detrimental effect on the new car market,' Cambria added.
At 10:22am: (LON:CAMB) Cambria Automobiles PLC share price was -0.5p at 52.5p