Cambria Automobiles Share Discussion Threads

[ed 123] 07/3/2016 10:00

Ta, stepone68. :-)

Yes, I got that but I think the answer is that, in the second paragraph, the word "Trading" is being used to mean "Profit", whereas the third paragraph is refering to sales volume.

Probably, it's a good trading update. It's a shame they did not express it in clear English. I'm sure management understand what's going on, but they need to convey it, without ambiguity, to present and potential investors.

[stepone68] 07/3/2016 09:27

The first bit is talking about overall trading. The second part is only about new vehicle 'unit' sales and the final part is the 'aftersales' operations. i.e. servicing etc. There are other parts - e.g. second hand vehicle sales, and the 'value' of the new sales is not mentioned which is why the individual like-for-like numbers do not appear to add up to the overall number.

[ed 123] 07/3/2016 09:18

If you like the trading update, perhaps you could help me to understand it?

Firstly, we have,

Trading in the first five months of the financial year has been substantially ahead of the corresponding period in 2014/15 on both a total and like-for-like basis.

Then later we see,

New vehicle unit sales were up 3.8% (like-for-like down 1.2%) ...

Also,

Growth in the Group's aftersales operations has also continued, with profitability up by 4.1% year-on-year (like-for like flat).

(In each case, my bold for emphasis.)

How would you explain this apparent conflict?

[eggbaconandbubble] 07/3/2016 07:26

Trading update- No complaints there!*



* Apologies to the Department for Education for inappropriate use of an exclamation mark! oops and again! and...

see today's newspapers.

[mortimer7] 04/3/2016 10:21

Ironically in the list of regns for February by model, VW Golf is in second place (Behind Ford Fiesta).
Although in fairness February is such a low volume month that it's unlikely this can be used as an accurate representation for the longer term. Also VW market share for 2016 YTD is 13% down on last year.

[mortimer7] 04/3/2016 09:06

Good news again this morning for motor retailers as SMMT issued the numbers for new car registrations in February:-

New car market grows 8.4% in February, with 83,395 units registered.
Registrations figures continued the positive start to 2016 in February, growing 8.4% compared with the same month in 2015.
Demand from private customers drives increases, up 22.6%, with fleet demand down 1.4%.
SMMT CEO commented "this positive performance is encouraging and puts the sector in a good position for the coming 12 months.”

[mortimer7] 03/3/2016 18:13

Thanks for that Skinny, looking forward to it.

[skinny] 03/3/2016 15:37

Mortimer - from link in the header - "Pre-close Trading Update 7th March 2016"

[mortimer7] 03/3/2016 15:27

For their half year period ending February, CAMB have issued a pre close trading update at the end of week one in March for the last couple of years.
So hopefully something tomorrow or Monday.

[theclangers] 17/2/2016 15:47

Ten small-cap shares to tempt growth investors: Stockopedia set out to create a "growth stars" screen for Interactive Investor. Crucially, we were looking for companies with positive historical and forecast growth trends.
These measures are brought together in the Growth Rank score, which ranks the growth profile of every company in the market from zero (poor) to 100 (excellent). The other rank we used is the Stock Rank, which ranks each company for a combination of its quality, value and momentum, again based on common financial ratios. (Cambria tops the list)


Name Market Cap (£m) 3 year EPS compound annual growth rate (%) Growth Rank Stock Rank Sector
Cambria Automobiles 82 32.1 92 99 Consumer Cyclicals

[theclangers] 16/2/2016 17:33

The Board expects Cambria's Interim Results for the six months to 28 February 2016 to be significantly ahead of the corresponding period of 2014/15 and views the outlook for the remainder of the financial year with confidence. In this regard, the Group's trading performance is tracking in line with the recently revised market expectations for the full year.

[theclangers] 16/2/2016 17:30

Cambria Automobiles Sales Ahead With Used Cars Outperforming New

14/01/2016 8:45am
Alliance News

[theclangers] 06/2/2016 15:36

I do like the way, (your wording) Administrative expenses as a proportion of revenue have been trending steadily down over the last four years.
Is that economy of scale working it's magic, no reason why it should not continue with every new acquisition. But yes always best to be prudent with projections.
thanks, all looks good to me.

[effortless cool] 06/2/2016 15:06

No problem. Happy to discuss the model - it helps me work out where it needs improvement.

[theclangers] 06/2/2016 14:56

Thanks for your time EC.

[effortless cool] 06/2/2016 14:52

Administrative expenses as a proportion of revenue have been trending steadily down over the last four years. To be prudent, I have assumed this downward trend flattens off in my projections. That gives LFL increases in underlying admin costs of 7.1% for 2016 (seems high, but H1 was up 9.8%, presumably related to acquisitions) and 3.3% for 2017.

[theclangers] 06/2/2016 14:45

EC, do your projections assume overheads rise at the same rate as inflation.
I was hoping 2.9% sales growth would translate into a bigger % profit.

[effortless cool] 06/2/2016 14:06

I have 2.0% LFL for 2016 and 1.1% LFL for 2017 on new cars in my projections.

[theclangers] 06/2/2016 13:55

meant to say delivers the same % growth (not bucks)

[theclangers] 06/2/2016 13:49

If cambria bucks the trend with 2.9% and 8.2% sales growth, assuming most overheads are fixed costs, any one know what profit increase that translates into. The fine are of number crunching is not my forte.

[effortless cool] 05/2/2016 07:24

Another thing to bear in mind is that CAMB has delivered a favourable movement in working capital in every one of the last six half year periods. They clearly manage their working capital very well and, I assume, extract additional benefit from their acquisitions in this regard.

[shanklin] 05/2/2016 07:14

Thank you EC

[effortless cool] 04/2/2016 20:29

Shanklin,

This company throws off loads of cash.

Net cash generated from operating activities in the last half year period was £10.3m. I am projecting £8.5m for 2016 H1, £10.0m for 2016 H2 and £5.4m for 2017 H1. The exact numbers don't really matter, however, they will certainly generate more than enough cash to move significantly net cash positive by February 2017 (subject to any further acquisitions).

[shanklin] 04/2/2016 11:15

EC, How will net cash be £10m please? At the least results, net cash was stated in the narrative as £1m, since when they have paid out £9.5m on acquisitions less disposals.

Of course, even after recent acquisitions having considerable allowances for goodwill, CAMB still has a fairly significant TBV.

[mortimer7] 04/2/2016 11:08

Well spotted Glaws, glad to see someone paying attention. (previous post now edited)