Cambria Automobiles Share Discussion Threads

[mortimer7] 06/1/2021 09:18

This morning the SMMT has published the numbers for UK new car registrations for December. Total registrations were 132,682, a reduction of 10.9% on Dec '19 total of 148,997.
Total figure for 2020 is 1,631,064 vs 2,311,140 last year.

SMMT revised their 2020 forecast in July this year to 1,603,000, so H2 has turned out just slightly better than expected.

SMMT Commentary "with the rollout of vaccines and clarity over our new relationship with the EU, we must make 2021 a year of recovery. With manufacturers bringing record numbers of electrified vehicles to market over the coming months, we will work with government to encourage drivers to make the switch, while promoting investment in our globally-renowned manufacturing base – recharging the market, industry and economy".

[mortimer7] 04/12/2020 09:08

SMMT figures released today show the total number of new cars registered in the UK in November were 113,781 vs 156,621 last year. A 27.4% reduction on November 2019.

[energeticbacker] 25/11/2020 18:22

Covered in Investor's Champion's latest update - tough period, but what of the outrageous remuneration of the CEO which consumes a good chunck of profit?!

[davebowler] 25/11/2020 10:05

Zeus;
Resilience in turbulent times
Cambria has delivered a resilient set of FY results in very turbulent times for the automotive industry at present. Underlying EBIT was within 4% of last year (or 7% if IFRS 16 impact is stripped out) mainly driven by strong cost control and Government support. Cash generation and the balance sheet remains robust, and we continue to see Cambria as a strong survivor, albeit with more turbulent times ahead as we head into 2021 and beyond.

§ Final results: This was very much a year of two halves with H1 strong as previously flagged to the end of February, with H2 heavily impacted by COVID-19. H1 PBT was £6.3m vs. £5.5m last year as announced in May, with implied H2 PBT of £4.9m vs. £6.8m last year. Revenues were -20.3% YOY with adjusted PBT -9.8% to £11.1m. The key observation we would make is underlying EBIT being just 4% down YOY or 7% fully adjusted for IFRS 16 driven by the recovery that took place from June as the UK came out of the first lockdown as well as strong cost control throughout the business. Cash generation was robust, and the balance sheet remains strong, with underlying ROE at 13% still ahead of its cost of capital.

§ Key drivers: As expected, all parts of the business fell in profit terms YOY, with significant cost control measures and Government stimulus that was put in place helping to preserve PBT levels being within 10% of last year. New vehicle sales were -25.2% with profit per unit increasing by 2.7% due to a favourable mix. F&I penetration remained high at 80.2% during the year. Used car units were -20.9% YOY, albeit the profit per unit +7.7% helped to minimise the gross profit YOY reduction. The drop in aftersales revenue was less severe at -14.7% with gross margins here remaining robust at 39.5%.

§ Outlook: The outlook continues to be cautious with a number of issues facing Cambria and the wider industry at present. Trading in September and October was ahead of last year, but turned negative again once the second lockdown commenced. There are many major uncertainties facing the industry at present including Brexit, Emissions and general economic issues namely anticipated rising levels of unemployment.

§ Investment view: We continue to see Cambria as one of the survivors in an industry where significant change, disruption and potentially consolidation is anticipated. The Group is well managed and has a strong balance sheet, and we believe its performance to date has been robust in tough and unprecedented trading conditions.

[effortless cool] 24/11/2020 14:37

FY results tomorrow for this forgotten share.

[mortimer7] 05/11/2020 09:14

The total number of new cars registered in the UK in October were 140,945 vs 143,251 last year. A 1.6% reduction on October 2019. (SMMT Figures).

[mortimer7] 05/10/2020 09:12

The total number of new cars registered in the UK in September were 328,041 vs 343,255 last year. A 4.4% reduction on September 2019. (SMMT Figures).

[mortimer7] 04/9/2020 09:17

SMMT have reported today that UK new car registrations in August were 87,226.
A 5.8% decrease on August 2019 total of 92,573.
SMMT commented:
"August is typically one the new car market’s quietest months, it’s important not to draw too many conclusions from these figures alone. With the all-important plate change month just around the corner, September is likely to provide a better barometer".

[essentialinvestor] 02/9/2020 10:04

Does anyone have a view on whether what we are seeing atm is still pent

up demand?, which will dissipate. Which leaves the sector facing a very tough 2021...

Looking at sector share prices that's what the market appears to be saying.

Any views appreciated.

My own take fwiw is CAMB rather that VTU may be nearer the mark.

[davebowler] 02/9/2020 09:58

Zeus-
Cambria has issued its Pre-Close Update indicating that it has seen a good recovery post lockdown from June, and appears to be consistent with what other operators have reported in the sector. However, the messaging around September appears to be more cautious as the order book is currently building at a slower rate vs. last year. We would expect FY20 results to be within 20% of last year given the strong H1 already reported, and believe the cost initiatives undertaken and currently in process ensure it maintains a robust balance sheet.

Pre-close update: Cambria has issued a Pre-Close Trading Update for the 11 months to 31 July 2020 ahead of FY results, which will be announced on 25 November. As per the H1 results issued on 6 May, Cambria reacted swiftly to the lockdown and has taken significant cost reduction measures across the business. Post lockdown, trading has been strong in June and July, which is consistent with what other operators in the sector have experienced. That said, this bounce back has not fully mitigated the impact of lock down but has gone some way in reducing it.

Key drivers: New retail units were -26.6% during the 11-month period and -27.6% including fleet and commercial. Gross profit per unit continues to advance by 4% driven by mix changes towards the High Luxury Segment. Used unit sales in the Group were -21.6% but traded well either side of lock down with gross profit per unit +4.3%. Aftersales saw revenue -13.6% but again traded well either side of lock down. Cambria has also benefited from a £3.7m CJRS grant and benefited from a £1.1m reduction in business rates. Tax payments have been maintained so a deferred payment liability does not build up. A further cost reduction programme is in the process of being implemented, with further detail expected to be given at the time of the FY results.

Outlook: The trading patterns seen from June appear to be consistent across the sector, with August also seemingly seeing ongoing pent up demand particularly in used cars as previously discussed. However, Cambria do comment that the September order book is building more slowly than last year. The management team have maintained its cautious approach to the wider economic environment from Q4, but also within the automotive market on both supply and demand side factors with Brexit looming and more demanding emissions regulations driving OEM behaviour. That said, the Group remains confident it can navigate itself through such testing times.

Investment view: While financial guidance is currently suspended, we would expect Cambria to be within 20% of the £12.3m adjusted PBT delivered last year. We know the H1 performance was c£1m ahead of last year, with H2 likely to be behind due to the impact of COVID-19. We would also expect the balance sheet position to be robust given the cost measures taken to date. We therefore see Cambria as one of the survivors in an industry where significant change, disruption and potentially consolidation is anticipated

[effortless cool] 02/9/2020 09:37

Yes. CAMB take a glass half empty perspective, VTU glass half full.

[jaf111] 02/9/2020 07:10

Surprisingly downbeat update.....certainly compared with Vertu’s recent update.......

[effortless cool] 30/8/2020 13:23

Pre-close trading update out on Wednesday.

[mortimer7] 05/8/2020 09:14

Some good news this morning:
SMMT have reported today that UK new car registrations in July total 174,887.
An 11.3% increase on July 2019 total of 157,198.

[thewheeliedealer] 21/7/2020 22:01

Hi all,

My mate Peter @Conkers3 and myself did a ‘Twin Petes Investing’ Podcast a few days ago and part of our discussion covers CAMB which I hold myself and I reckon the Car Retail sector looks very interesting now. We also chatted about loads of other Stocks and as always a fair bit of general Portfolio Management educational stuff. Anyway, if you use Apple, Audioboom, Overcast or Spotify you can find it under the 'Conkers Corner' Channel (you want TPI Podcast 27) and you can find it on Soundcloud at the link below.

I hope you enjoy it and find it useful,

Cheers, WD
@wheeliedealer

[mortimer7] 06/7/2020 09:09

Number of new car registrations for month of June announced just now by SMMT.
Total 145,377. Last June was 223,421.

[mortimer7] 04/6/2020 09:15

SMMT data just out showing 20,247 new cars registered in May in the UK.
89% decline vs last May. Better than Aprils total of 4,321.

[mortimer7] 05/5/2020 09:19

Figures just published by SMMT show the number of new cars registered in the UK in April were 4,321. April 2019 was 161,064. A 97.3% decline.
In April there are similar falls across Europe, with France 88.8% down and the Italy 97.5%.

[mortimer7] 06/4/2020 09:14

Figures just published by SMMT show the number of new cars registered in the UK in March were down 44.4% compared to March 2019.
Total units registered were 254,684 vs 458,054 last year.

SMMT Comment
"With the country locked down in crisis mode for a large part of March, this decline will come as no surprise. Despite this being the lowest March since we moved to the bi-annual plate change system, it could have been worse had the significant advanced orders placed for the new 20 plate not been delivered in the early part of the month. We should not, however, draw long term conclusions from these figures other than this being a stark realisation of what happens when economies grind to a halt.

How long the market remains stalled is uncertain, but it will reopen and the products will be there. In the meantime, we will continue to work with government to do all we can to ensure the thousands of people employed in this sector are ready for work and Britain gets back on the move"

[mortimer7] 05/3/2020 09:29

SMMT released unit numbers today for new cars registered in the UK in February.

Total units registered were 79,594 a decrease by 2.9% compared to February 2019 (81,969).

Not too significant though as February has been the smallest month for registrations over the last couple of years. March will be the tester.

[mortimer7] 04/3/2020 12:45

Decent update given the current market circumstances:

"While the new car market remains difficult, our superior brand representation, excellent franchise portfolio and strong balance sheet means that the Group remains well positioned and able to take advantage of any opportunities that may arise."

The Group's trading performance in the first five months of the current financial year has been in line with the Boards' expectations and ahead of the previous year.

[mortimer7] 03/3/2020 14:04

Trading update due tomorrow from Cambria Automobiles.

[mortimer7] 05/2/2020 09:09

UK new car registration figures for January were published this morning by SMMT.
A total of 149,279 units were registered, compared to 161,013 last January, a drop of 7.3%. Unwelcome news particularly after yesterdays 2035 deadline announcement.