Cambria Automobiles cautious on car market as trading performance lags

Car dealer Cambria Automobiles said its trading performance in the first five months of the current financial year was lagging fiscal 2017, in line with its expectations.

The weaker new car market had put pressure on volumes, with sales down 16.5%, though gross profit per retail unit improved.

Used vehicle sales were down 6.8% as a result of site closures and refranchising activity, though the reduction was also offset by continued improvement in gross profit per unit.

Cambria Automobiles said it continued to remain cautious about the new car market.

'The government's clean air policy narrative and the inconsistent messaging around the forward looking position on diesel engines has created a reduction in consumer demand for diesel vehicles, which formed 42% of the new car market in 2017 and 47.7% in 2016,' it said.

'The general uncertainty in the consumer environment remains, as does the pressure that vehicle manufacturers are under as a result of the current Sterling exchange rate.'

'Whilst the outlook has some micro and macroeconomic challenges, the board believes that the group is well placed to continue to deliver on its strategy of enhancing its portfolio with the arrival of Bentley, Lamborghini and McLaren in the period.'

At 2:10pm: (LON:CAMB) Cambria Automobiles PLC share price was -3.5p at 59.5p