Franchised dealer group Cambria Automobiles has experienced a fall in profits for the year ending in August, despite a 5% rise in revenues from 2016.
Operating profits fell to £11.8m, down 4.8% from last year, against revenues of £644.3m.
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Volume sales were down for the year, which the group said was partly offset by increased profits per unit, +25.7% in new vehicles and +5.6% in used ones.
On top of the results, Cambria has announced the extension of a 2015 banking arrangement with Lloyds. A new £40m revolving credit facility has been granted to Cambria for the next five years, with the option to add another £20m in the future.
Mark Lavery, chief executive officer of Cambra, said: “The first half of the financial year was strong and we reported significant year on year growth … The weakening in the Sterling exchange rate has led to inflation in the landed cost of imported vehicles into the UK which, combined with a level of consumer uncertainty in the market, has led to the anticipated reduction of new car sales.
“Our strategy for the 2016/17 financial year was to integrate the acquired businesses from last year and progress the property investments needed to bring those businesses up to manufacturer standards.
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By GlobalData“The Board remains confident that Cambria’s resilient business model and focus on delivering a superior guest experience and financing arrangements leave it well positioned to take advantage of any opportunities that the current economic uncertainty could provide.”
Dealer brands in the Cambria group include Doves, Grange, Dees, Invicta, Motorparks and Pure Triumph.
