TIDMCAMB
RNS Number : 3917G
Cambria Automobiles Plc
25 November 2020
25 November 2020
Cambria Automobiles plc
("Cambria" or the "Group")
AIM: CAMB
FINAL RESULTS 2019/20 AND NOTICE OF AGM
Resilient performance despite significant period of turbulence
as a result of COVID-19
Cambria, the franchised motor retailer, announces its final
results for the year to 31 August 2020.
The Group reported a strong first half of the financial year,
however the trading performance in the second half was
significantly impacted by the COVID-19 pandemic and particularly
the enforced national lockdown for the period 24 March 2020 to 31
May 2020, which required the closure of all non-essential retail
businesses, including car showrooms.
Financial Highlights
Year ended 31 August 2020 2019
GBPm GBPm Change
Revenue 524.0 657.8 -20.3%
Underlying EBITDA excluding
transition to IFRS 16*
** 16.2 17.1 -5.3%
Underlying EBITDA with
transition to IFRS 16*
** 18.8 17.1 +9.9%
Underlying operating profit*
** 13.0 13.6 -4.4%
Underlying profit before
tax* ** 11.1 12.3 -9.8%
Underlying profit before
tax margin* ** 2.11% 1.87% +24bps
Underlying earnings per
share* 8.99p 9.78p -8.1%
Operating profit 12.0 13.9 -13.7%
Profit before tax 10.2 12.5 -18.4%
Earnings per share (basic) 8.22p 9.95p -17.4%
Dividend per share - 1.1p
* These items exclude net non-recurring expense of GBP1.0m
relating to reorganisation costs and acquisition costs (2019:
profit on disposal of property assets held for resale GBP0.4m and
closure costs GBP0.2m) See Note 4
** The adoption of IFRS 16 has an impact on the PBT, Operating
Profit and EBITDA calculation as a result of the operating lease
expense for rent payable being unwound and replaced with
depreciation and finance expense. See Note 3.
-- Strong balance sheet - net assets GBP71.7m (2019: GBP65.6m)
-- Strong operational cash flows, net cash flow from operating
activities of GBP16.4m (2019: GBP22.2m)
-- Net cash of GBP3.5m (31 August 2019: net debt GBP3.8m),
supported by the UK Government's Coronavirus Job Retention Scheme
and Business Rates relief measures
-- Continued disciplined investment in freehold property
portfolio during year, deploying GBP4.2m in capital expenditure
-- Underlying Return on Equity at 13.1% (2018/19: 16.0%)
Operational Headlines
-- New unit sales to retail customers reduced 25.2%
(like-for-like down 25.5%), and gross profit reduced despite the
2.7% (like-for-like up 1.5%) increase in profit per unit
-- Lower margin Fleet and Commercial units reduced 33.3% and 39.7% respectively
-- Overall unit sales of new vehicles reduced by 26.3% (like-for-like down 26.5%)
-- Used vehicle unit sales down 20.9% following March lockdown
(like-for like down 21.3%), partially offset by a 7.7% (like-for
like 6.4%) improvement in profit per unit
-- Aftersales Revenue reduced 14.7% (like-for-like down 15.3%)
-- Group's entry into the Scottish market with the acquisition
of an Aston Martin dealership and its Freehold Property in
Edinburgh taking the Group to four Aston Martin dealerships
-- Strengthening of High Luxury Segment with acquisition of
Rolls-Royce Motor Cars dealership in leasehold premises in
Edinburgh, welcoming this prestigious brand into the portfolio
-- Refranchising of Volvo Preston into Alfa Romeo and Jeep to
create FCA Brand centre in Preston
-- Completion of land purchase in Solihull for the development
of Aston Martin Birmingham site relocation
Mark Lavery, Chief Executive Officer of Cambria said:
" The unprecedented and ongoing effects of the Covid-19 pandemic
have put the Group through the most challenging period in its
history, though against this backdrop the business has demonstrated
its resilience. We endured the material and devastating impact of
Lockdown 1 (24 March until 31 May), followed by the bounce back and
pent up demand experienced during the summer months, which went
some way to offsetting the damage the pandemic inflicted during
that time.
The performance in the first half of the financial year to 29
February 2020 was unaffected by the pandemic and we had traded
strongly during this period. In our Interim Results published on 6
May 2020 we highlighted that the impact of the pandemic and that
the national lockdown would have a material negative impact on the
financial performance in the second half and particularly during
the March to May period, the year on year negative variance was
significant.
The dramatic economic impact of the pandemic forced the Board to
consider all its operating procedures and Guest handling processes.
We took decisive action to protect the Group and to make it leaner,
more flexible and agile in preparation for a very different market
place and society once we emerged from the crisis.
At the time of writing, we are in the second enforced national
lockdown and whilst our leaner, more flexible and more agile
business is better equipped to deal with the challenges of a
lockdown on our industry, it is still having a significant impact
on our day to day trading.
I have flagged in previous statements that the motor industry is
facing some significant changes over the coming years. We are
concerned about our future relationship with the EU post conclusion
of the BREXIT transition period on December 31(st) this year as
this may lead to tariffs being in place for cars and parts being
imported from Europe, which will drive up the price of those goods
to UK consumers.
Our manufacturer partners continue to face the challenges of
meeting compliance with the 2020 and 2021 CO2 emissions targets and
a number are facing significant fines for failing to meet the
targets set. The UK Government has announced that it will be
banning the sale of Internal Combustion Engine propelled vehicles
from 2030 and Hybrids from 2035. These decisions will drive a need
for the automotive manufacturers to develop compliant vehicles at a
significant rate and incur a huge amount of R&D spend in doing
so which will invariably drive up the price of vehicles for the
general public. Along with the National Franchised Dealer
Association and other motor retail executives, I have lobbied hard
to try to stop government ministers from making this unfortunate
decision and instead urged them to consider a more technology
agnostic and balanced approach to achieving net zero by 2050.
Political factors appear to be dominating the decision-making
process rather than a coherent plan to finding the right practical
solutions for reducing carbon emissions towards Net Zero by
2050.
The significant increase in unemployment will only accelerate
post the conclusion of the Government Furlough scheme due to finish
at the end of March 2021 and this leads me to be cautious about the
coming financial year.
I would like to thank all our Associates across the business for
their incredible application and flexibility during this
unprecedented time and without which we would not have been able to
navigate the challenges that the Covid-19 pandemic has forced upon
the organisation.
Trading in the current financial year started well, with
September and October results ahead of the previous year before the
enforced Lockdown 2 commenced, which has again had a material
negative impact on trading.
As a result of the unprecedented challenges imposed by COVID-19,
Lockdown 2, the structural changes facing the Automotive Industry
and the economic challenges that the UK will face post BREXIT and
pandemic, the Board remains cautious in its outlook though
confident that the Group has the right business model to face the
challenges ahead."
Continued Suspension of Forward Guidance
The enforced national Lockdown 2 period (which commenced on 5
November) has resulted in the Group's car showrooms being required
to close. This will have a material impact on the Group's financial
performance in the financial year to 31 August 2021 and as a
result, the Board continues to deem it prudent to suspend financial
guidance to the market.
Notice of AGM and posting of report and accounts
The Company also gives notice that the Annual General Meeting of
the Company will be held at 10.30am on 7 January 2021 at Grange
Aston Martin, Hatfield, AL10 9US (the "AGM").
Given the current COVID-19 pandemic and the associated UK
Government measures, the AGM this year will need to be held as a
closed meeting. Shareholders will not be permitted to attend the
AGM other than to meet the quorum requirement under the Company's
Articles of Association, for which the necessary members will be
provided by the Company. Instead, shareholders are strongly
encouraged to submit Forms of Proxy in favour of the Chairman of
the AGM in order to ensure their votes will be counted.
In order to protect the health and wellbeing of our shareholders
and Associates, any shareholder who seeks to attend the AGM in
person, will be prevented from doing so on grounds of public
safety. The proceedings of the AGM will be restricted to the formal
business set out in the Notice of AGM. The results of the voting on
each resolution will be announced and uploaded onto the Company's
website promptly following the close of the AGM.
The Company will continue to monitor the UK Government measures.
If circumstances change resulting in the lifting of measures
preventing the movement or gathering of people before the date of
the AGM, it will consider whether it is appropriate to open up the
AGM for attendance by shareholders. If this is the case, an update
will be given on the Company's website and by way of announcement
to the regulatory news service of London Stock Exchange plc.
The annual report and financial statement for the year ended 31
August 2020 (the "Report and Accounts") will shortly be posted to
shareholders together with a notice of its AGM.
Copies of the Reports and Accounts and the AGM notice will be
made available shortly from the Company's website,
www.cambriaautomobilesplc.com, in accordance with AIM Rule 20.
Enquiries:
Cambria Automobiles Tel: 01707 280 851
Mark Lavery, Chief Executive
James Mullins, Finance Director
www.cambriaautomobilesplc.com
N+1 Singer - Nomad & Joint Broker Tel: 020 7496 3000
Mark Taylor / Jen Boorer
Zeus Capital - Joint Broker Tel: 020 7533 7727
Dominic King
FTI Consulting Tel: 020 3727 1000
Alex Beagley / James Styles /
Sam Macpherson
Chairman's statement
Despite the obvious challenges that the Group has faced during
the course of the 2019/20 financial year I am pleased to report
that Cambria has delivered a strong set of results in the
circumstances. The Group has managed the operation of the business
and risen to the challenges imposed by COVID-19 extremely well,
balancing the safety of our Associates and Guests with the
immediate need to sell vehicles and services and the medium term
need to ensure that the Group is well placed to manage itself in a
viable manner through the economic challenges that will follow in
2021 and thereafter.
Much of the strategic decision making during the year has been
focussed on restructuring operations and cost base optimisation to
ensure that the business is leaner, more agile, to ensure that it
is able to cope with the evolving economic landscape and specific
changes to the automotive industry.
Whilst dealing with the day to day operations, the management
team has also continued to deliver on a number of strategic
franchising and property investment objectives and been able to
demonstrate profitability whilst absorbing those changes and at the
same time generating positive net cash.
The Group continues to manage its cash flow well to ensure it
has adequate liquidity. Some of the major investment projects were
paused as a result of the pandemic and remain under review whilst
the Board assesses its options in light of the pandemic, its impact
on unemployment, BREXIT and the major changes impacting the
automotive industry.
The Group, in its 14(th) year of trading, delivered GBP16.2m of
underlying EBITDA (excluding IFRS 16 impact) and GBP11.1m of
underlying pre-tax profit.
Since its inception in 2006, the Group has only raised a total
of GBP10.8m in capital and continues to maintain an excellent
return on shareholders' funds which this year reached 13.1%.
The strategic acquisitions, franchise changes and greenfield
developments which the Group has delivered over the past six
financial years have accelerated the Group's growth and created a
solid foundation in the Premium and High Luxury Segment (HLS),
giving Cambria a broader and enhanced franchised dealership
portfolio mix. The addition of the Aston Martin and Rolls-Royce
Motor Cars dealerships in Edinburgh in January 2020 continued to
enhance the Group's development of its HLS portfolio and expand its
geographical spread.
The new car market in the UK continues to come under pressure as
a result of lockdowns, BREXIT and challenging emissions targets.
2019 finished with 2.31m registrations for the overall market.
Based on the SMMT October outlook report, it is forecast to end
2020 at 1.56m registrations (down 32.5%) and the current forecast
is set to see registrations in 2021 only to recover to 2.0m new car
registrations. These are against a record 2.69m registrations in
2016. The biggest change in the market remains the diesel segment
which is expected to be down 45.5% in the year largely as a result
of negative media coverage and government measures.
Looking ahead, the new car market will be further disrupted as a
result of the Government's recent announcement, as part of its
Green Revolution, that it is bringing forward the banning of the
sale of pure Petrol and Diesel cars from 2030 and Hybrids from
2035, which will mean a seismic shift in the need to develop pure
Battery Electric Vehicles, currently the only alternative
propulsion solution. This will undoubtedly lead to a significant
restriction in consumer choice as these vehicles are significantly
more expensive to produce than Internal Combustion Engine powered
vehicles and the potential abandonment of personalised transport in
rural areas.
An immediate challenge for the manufacturers is the need to meet
the 2020 and 2021 CO2 emissions targets to avoid the punitive fines
that they will receive for each gram of CO2 per kilometer that they
exceed their target. These targets were originally set at a
European level and therefore the targets that the manufacturer had
to meet were averaged across the EU. The UK (which has a bigger
component of higher emitting vehicles) was therefore offset by
lower emitting countries. Post BREXIT the UK will adopt the same
emissions targets for each manufacturer but without the benefit of
averaging across the EU. This will therefore force the
manufacturers to critically assess which cars they will be able to
register in the UK to avoid the fines, making the sale of the cars
non-viable. This again will reduce consumer choice and
significantly increase the price of new cars supplied to the
UK.
Focusing on the Group's 2019/20 results, revenue unsurprisingly
reduced by 20.3% to GBP524.0m (2018/19: GBP657.8m). Underlying
profit before tax decreased by 9.8% to GBP11.1m (2018/19: GBP12.3m)
and the Group delivered underlying earnings per share of 8.99p
(2018/19: 9.78p) - a decrease of 8.1%.
The Group closed the year with net cash of GBP3.5m (2018/19: net
debt GBP3.8m) after capital investments of GBP5.4m of which GBP4.2m
was invested into the Group's freehold property portfolio. The
Group has net assets of GBP71.7m (2018/19: GBP65.6m), underpinned
by the ownership of GBP81.3m (2018/19: GBP78.4m) of freehold
properties.
Group overview
Cambria was established in 2006 with a strategy to build a
balanced motor retail group to deliver the self-funded acquisition
and turnaround of underperforming businesses. The strategy evolved
in 2013 to encompass the acquisition of Premium and High Luxury
businesses, located in geographically strategic locations. It has
made good progress over the past six years in delivering on this
strategy by acquiring businesses and refranchising dealerships as
follows:
-- Alfa Romeo and Jeep in Preston in March 2020
-- Aston Martin and Rolls-Royce in Edinburgh in January 2020
-- Vauxhall in Warrington in May 2019
-- Citroen in Oldham in May 2019
-- Suzuki in Maidstone in April 2019
-- Peugeot in Warrington in October 2018
-- Lamborghini in Tunbridge Wells in November 2018
-- Lamborghini in Chelmsford in April 2018
-- McLaren in Hatfield in January 2018
-- Bentley in Essex and Kent in January 2018
-- Woodford Jaguar Land Rover in July 2016
-- Aston Martin Birmingham in May 2016
-- Welwyn Garden City Land Rover in January 2016
-- Swindon Land Rover in April 2015
-- Barnet Jaguar Land Rover in July 2014
Following the refranchising activity outlined above, the Group
now comprises 29 locations, representing 44 franchises and 19
brands, a well-balanced brand portfolio spanning the High Luxury,
Premium and Volume segments.
These new franchising and property developments are exciting for
the Group and demonstrate its commitment to developing the Premium
and High Luxury Segment franchises in geographically strategic
locations.
Dividend
As a result of the COVID-19 pandemic and uncertainty over the
outlook the Board has suspended dividends and does not propose a
final dividend in respect of the financial year 2019/20 (2018/19:
0.85p).
Outlook
As highlighted at the start of my report, the COVID-19 pandemic
has led to unprecedented social and economic challenges. We have
little visibility on how this will continue to impact the way in
which we live our lives day to day. This obviously has an impact on
how motor cars are sold and since March 2020 the amount of travel
that employees need to undertake for work has significantly reduced
with home working and smarter technology usage for meetings
becoming the norm.
The UK economy remains in a period of significant uncertainty
while the ramifications of leaving the EU are worked through. Even
at this late stage there is little clarity on how or if 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.
The team has done a good job in navigating through the
challenges and continues to evolve the Group strategy in light of
the risks and opportunities.
Philip Swatman
Chairman
Operating and financial review
Chief Executive Officer's review
Introduction
The financial year to 31 August 2020 has seen the Group, like
the rest of society, operate through truly unprecedented times.
Despite the challenges that the COVID-19 pandemic has had upon the
way in which we trade and the impact that the enforced lockdown
from 24 March to 31 May had on the ability to retail vehicles we
have delivered a good financial result in the circumstances.
The table below summarises our financial performance, which is
detailed in the Finance Director's Report:
Year ended 31 August 2020 2019
GBPm GBPm Change
Revenue 524.0 657.8 -20.3%
Underlying EBITDA excluding
transition to IFRS 16*
** 16.2 17.1 -5.3%
Underlying EBITDA with
transition to IFRS 16*
** 18.8 17.1 +9.9%
Underlying operating profit* 13.0 13.6 -4.4%
Underlying profit before
tax* 11.1 12.3 -9.8%
Underlying profit before
tax margin* 2.11% 1.87% +24bps
Underlying earnings per
share* 8.99p 9.78p -8.1%
Operating profit 12.0 13.9 -13.7%
Profit before tax 10.2 12.5 -18.4%
Earnings per share (basic) 8.22p 9.95p -17.4%
Dividend per share - 1.1p
* These items exclude net non-recurring expense of GBP1.0m
relating to reorganisation costs and acquisition costs (2019:
profit on disposal of property assets held for resale GBP0.4m and
closure costs GBP0.2m) - See Note 4
**The adoption of IFRS 16 has an impact on the PBT, Operating
Profit and EBITDA calculation as a result of the operating lease
expense for rent payable being unwound and replaced with
depreciation and finance expense. See Note 3.
The pandemic has forced us to change the way in which we operate
with all the necessary personal protection and social distancing in
place. The business is leaner and more agile and this will enable
it to respond effectively to the changing nature of vehicle supply
and customer demand.
The Group celebrated its 14(th) anniversary in July 2020. During
those 14 years the Group has grown from one site with three new car
franchises to 29 locations representing 44 new car franchises and
19 different brand partners. The Group has utilised a total of
GBP10.8m of Share Capital to grow and has delivered an underlying
Profit before Tax of GBP11.1m in 2019/20. During the year, the
Group delivered a return on shareholder funds of 13.1%. The Group
has consistently delivered strong operational cash flows and has
built a net asset position of GBP71.7m underpinned by GBP81.3m of
freehold property. The Group has developed an exceptional franchise
portfolio which has been enhanced further during 2020 with the
addition of our first Rolls-Royce Motor Cars dealership and fourth
Aston Martin dealership, both in Edinburgh in January 2020.
The year under review was impacted significantly by Lockdown 1
in the period between 24 March and 31 May. As the country headed
towards Lockdown 1, the Board took a series of steps to deal with
the lockdown instruction:
On 23 March and in line with Government instructions, all Group
car showrooms closed from midnight and the Group ensured that all
assets were secured. Outstanding servicing and warranty repairs
were fulfilled with enhanced personal safety measures in place. As
a precautionary measure, there was a full drawdown of the GBP40m
RCF facilities to ensure liquidity and to protect the cash balance.
All capex projects were put on hold and kept under review. Some of
the aftersales facilities remained open on a limited basis to
support essential and key workers primarily.
During the lockdown period, the Board agreed to salary
reductions of 20-50%. The Board carried out a detailed review by
site and department of the operating structure and Associate base.
Following the support package announcement on Friday 20 March, the
'Coronavirus Job Retention Scheme' was fully utilised. Business
rates waivers were applied for across all sites. The Board carried
out a detailed expense review by site and department to minimise
the cash burn during the lockdown period. During the period the
Group also maintained timely tax payments so that it did not build
up a deferred payment liability.
Following the reopening of car showrooms from 1 June 2020
onwards the Group has operated in line with stringent operating
guidance to ensure the safety of our Associates and Guests
utilising PPE, hand sanitising and social distancing measures in
the business.
In the period post lockdown, between 1 June and 31 August, the
business performed well and whilst we were selling fewer cars year
on year, the profit retention particularly in the used car segment
was strong. Aftersales performed well in the period post lockdown
and the Group's cost base was well controlled.
Whilst I had never envisaged having to close the doors on the
business that had taken 14 years to build in 24 hours I believe
that the whole of the Cambria Associate base reacted positively and
professionally to deal with it as effectively as possible. For
those Associates placed on Furlough this will have been a
challenging and unsettling time and for those Associates that
continued to work throughout the lockdown period it has undoubtedly
been tiring. I am grateful to all our Associates that have
continued to support the business throughout.
Brand partnerships
Management has continued to work hard to improve the businesses
acquired in previous years and to integrate and develop those
acquired and established in the current year,
Our current portfolio of brand partners and dealerships
comprises:
High Luxury / Premium Volume Motorcycle
Aston Martin 4 Abarth 2 Triumph 2
Bentley 2 Alfa Romeo 1
Jaguar 5 Citroen 1
Lamborghini 2 Fiat 2
Land Rover 4 Ford 5
McLaren 1 Jeep 1
Rolls-Royce 1 Mazda 3
Volvo 3 Peugeot 1
Suzuki 1
Vauxhall 3
Total 22 20 2
A significant period of refranchising activity began during the
2017/18 financial year which demonstrated delivery of the Group's
development strategy which evolved in 2013 to enhance our Premium
and High Luxury brand representation. This continued in 2020 with
the addition of the Group's fourth Aston Martin business and first
Rolls-Royce Motor Cars business both in Edinburgh. The Acquisition
was from the Administrator of Leven Cars Group Limited and included
the trading assets and the freehold property occupied by the Aston
Martin business for a total consideration of GBP1.7m.
Operations
Year to 31 2020 2019
August
Revenue Revenue Gross Margin Revenue Revenue Gross Margin
mix Profit mix Profit
GBPm % GBPm % GBPm % GBPm %
New vehicles 218.3 41.7 15.7 7.2 293.8 44.7 20.6 7.0
Used vehicles 252.2 48.1 21.4 8.5 302.8 46.0 25.1 8.3
Aftersales 65.6 12.5 26.0 39.6 76.9 11.7 29.4 38.2
Internal sales (12.1) (2.3) - - (15.7) (2.4) - -
-------- -------- -------- ------- -------- -------- -------- -------
Total 524.0 100.0 63.1 12.0 657.8 100.0 75.1 11.4
-------- -------- -------- ------- -------- -------- -------- -------
Administrative expenses (50.1) (61.4)
Operating profit
before non- recurring
expenses 13.0 13.7
Non-recurring
income / (expenses) (1.0) 0.2
-------- --------
Operating
profit 12.0 13.9
-------- --------
New vehicle sales
2020 2019 Year on year
change
New units 5,535 7,509 (26.3%)
------ ------ -------------
New vehicle revenue reduced from GBP293.8m to GBP218.3m (down
25.7%) with total new vehicle sales volumes being down 26.3%. Gross
profit decreased by GBP4.9m (23.8%) in total. The reduced new
vehicle volumes were partially offset by the improvement in the
gross profit per unit sold which increased by 4.0% in total.
On a like-for-like basis, excluding the impact of the additions,
our new volumes reduced by 26.5% with gross profit reducing by
GBP5m as profit per unit increased 2.8% on a like for like
basis.
The Group's sale of new vehicles to private individuals was
25.2% lower year-on-year at 5,116 units (like-for-like down 25.5%),
the profit per unit for these vehicles improved 2.7% (like-for-like
1.5%). New commercial vehicle sales transacted at a low profit per
unit and were significantly down by 39.7% to 235 units in the
period. New fleet unit vehicle sales decreased by 33.3% to 184
units in the period.
The new vehicle registration data from the Society of Motor
Manufacturers & Traders showed total registrations were down
26.2% in the rolling 12 month period to August 2020. The
registration of cars to private individuals was also down 24.6% for
the rolling 12 months. The sale of diesel engine vehicles has been
hardest hit as a result of the negative media coverage around
diesel engine emissions, and in the period, sales of diesel
vehicles were down 39.9%.
Used vehicle sales
2020 2019 Year on year
change
Used units 10,346 13,072 (20.9%)
------- ------- -------------
W e have delivered another good performance in used vehicle
sales despite the impact of lockdown. Revenues decreased from
GBP302.8m to GBP252.2m (down 16.7%) whilst the number of units sold
declined by 20.9%. The gross profit on used vehicles decreased by
GBP3.7m to GBP21.4m, with profit per unit sold increasing by
7.7%.
On a like-for-like basis, volumes were down 21.3% while the
gross profit per unit increased by 6.4%.
We have continued our focused strategy in the used car
department to increase the efficiency with which we source, prepare
and market our used vehicles in order to drive our Velocity trading
principles. This has produced strong results, increasing the profit
per unit retailed. During the period the lockdown obviously
impacted stock turn as we were unable to retail the stock that we
had at the point of lockdown. Despite the reduced gross profit
derived as a result of the lockdown, this strategy continued to
deliver a strong 12 month rolling return on used car investment* of
97.4%. This level was reduced from the 117% achieved last year
without the impact of lockdown. The ROI performance at 97.4%
remains significantly ahead of the industry average of 75.6%.
* gross profit from used car operation over 12 months as a
proportion of average stock levels for the year
Aftersales
2020 2019 Year on year
change
Aftersales Revenue GBP65.6m GBP76.9m (14.7%)
---------- ---------- -------------
Combined aftersales revenue decreased 14.7% year on year from
GBP76.9m to GBP65.6m and related gross profit decreased to GBP26.0m
from GBP29.4m. Like-for-like aftersales revenues were 15.3% lower
year on year, with gross profit reducing 13.6% to GBP25.4m, down
GBP4m.
The aftersales departments contributed 12.5% of the Group's
revenue, and 41.2% of the Group's overall gross profit. The
aftersales margin was improved in the year.
The Group continues to review its processes for ensuring that we
engage with all of our Guests to maximise the opportunity to
interact with them through our Guest Relationship Management
Programme. This is our contact strategy involving the sale of
service plans and delivery of service and MOT reminders in a
structured manner, utilising all forms of digital media as well as
traditional communication methods. The Group continues to focus on
the sale of service plans and its unique warranty-4-life product to
enhance Guest retention.
Administrative Expenses (including Government support)
Total underlying administrative expenses remained tightly
controlled during the year but also benefitted from the Government
support stimulus in the form of the Coronavirus Job Retention
Scheme and Business Rates relief which amounted to GBP5.5m in the
period. Administrative expenses as a percentage of revenue were
9.6% (2018/19: GBP9.3%), demonstrating good overhead recovery and
strong capital disciplines as the Group navigated through the
pandemic.
Automotive Industry Issues
Over the next few years, new vehicle sales will continue to be
impacted by three factors. The impact of BREXIT, the immediate
impact of the fines from the Corporate Average Fuel Economy (CAFÉ)
legislation and most recently the Government's decision to bring
forward the banning of the sale of Internal Combustion Engine
vehicles to 2030.
In the near term we will find out if there is a free trade
agreement to govern the UK's dealings with the EU. Given the size
of the Automotive Industry in the UK and the scale of the sales of
parts and cars between the UK and the EU this should be a
significant consideration for both sides in the negotiation. At the
time of writing the terms of any deal that is being discussed have
not been released. If there are tariffs on the sale of cars both
ways it will impact consumer choice and the cost of cars to
consumers. This is not in the interest of either side of the
negotiations but is a genuine issue that the UK motor retail trade
is facing. For the avoidance of doubt the industry requires a
completely frictionless and tariff free trade agreement with the EU
for it to be effective.
The supply of cars in the UK is being impacted and dictated by
the manufacturers' needs to comply with the 2020 and 2021 onwards
CAFÉ' regulations which govern the emissions targets for each
manufacturer. Failure to meet the emissions target for a
manufacturer in a given year generates a fine equivalent to EUR95
per gram of CO2 over the target, multiplied by the number of cars
that the manufacturer registers. It is no surprise that the
manufacturers are being selective about which cars they manufacture
and register in any given period. Post BREXIT this impact in the UK
will be amplified as the target for a given manufacturer will be
based on the registrations in the UK alone, not averaged across the
EU. This will impact supply in the UK in 2021.
The decision by the Government to bring forward the banning of
the sale of pure ICE engine vehicles from 2040 to 2030 and Hybrids
from 2030 is best described as a "Date without a Plan". We have
lobbied Government ministers continuously with the hope that they
will consider a balanced approach that is technology agnostic in
meeting the objective on Net Zero by 2050. We fully support the aim
of Net Zero which is completely necessary. We do object to Battery
Electric Vehicles (BEV) being determined as the only viable
solution because of the way in which the political momentum is
driving decisions that will impact technology development, the
environment and will not achieve the Net Zero ambition on a whole
lifecycle basis. Some of the challenges around BEV as the only
solution are as follows:
-- Polestar have calculated that the breakeven Carbon Emissions
point between its Polestar 2 full BEV and a Volvo XC40 Petrol ICE
engine car is not reached until the cars have driven 119,000km in a
global test environment. This is caused by the significantly higher
Carbon output from the production of a BEV over an ICE vehicle
-- All current battery power units include 10 to 12 kilograms of
Cobalt of which a significant amount comes from the People's
Democratic Republic of Congo. Some of this is being mined by
children and these practices are currently part of an ongoing
investigation by Amnesty International into child slavery
-- Cobalt and Lithium are still described are rare earth
materials and are therefore finite in resource
-- More than 70% of batteries begin life in China being
manufactured using coal fired power stations. The Batteries are
then shipped around the world after having had multiple commodity
inputs (including cobalt) shipped to China in the first instance
leaving a huge carbon footprint
-- Recycling Electric Vehicles is much more difficult because of
the battery. Whilst batteries can be reused for second life energy
storage in wind farms etc they do degrade and will end their life
at some point - currently in landfill
-- We do not yet know the impact of a significant shift in the
number of Electric Vehicles on the National Grid and whether or not
it will be able to cope with those demands. The power generated for
the National Grid typically comes from Nuclear Power Stations so
increased electricity consumption for Electric cars needs to be
generated from somewhere
-- We do not have the charging infrastructure in the UK to cope
with the demand for this technology switch and it will take
billions of pounds of investment to meet this demand. Anyone in the
UK without a private drive or garage will need to rely on plugging
their vehicle into roadside charge point of which there will be few
per average street
-- The cost of producing a BEV over an ICE engine car is significantly higher
-- BEV's are significantly more expensive and there is a danger
that a new vehicle becomes an exclusive club available only to
metropolitan, well-off citizens and an abandonment of rural
Britain
-- Ultimately the cost of electrification will be borne by the
soft target of the UK car purchasing consumer
The acceleration by Government to a single technology solution
will put a stop to any R&D that the manufacturers were
considering to evolve the development of Hybrid, Hydrogen and
Synthetic Fuel technologies which could all achieve the aim of Net
Zero in a better manner than the route which is being forced by the
policy implementation.
Outlook
The new car market in 2019 hit 2.311m registrations. The current
SMMT forecasts for 2020 following Lockdown 1 and 2 is now 1.56m
with a recovery to 2.0m in 2021 forecast.
We are facing challenges as a result of the COVID-19 pandemic,
BREXIT and the Automotive specific issues highlighted above. We are
reacting positively as we get transparency on each of the areas
where we see risk and opportunity and continue to be agile in
dealing with them.
Despite the significant external challenges, the 2019/20
financial year delivered an acceptable set of results. Post the
period end, September and October trading were ahead of prior year.
The imposition of Lockdown 2 has impacted the progress that the
Group was making and despite the fact that operationally we were
better prepared for Lockdown 2 than we were in March when Lockdown
1 was imposed, it is still causing a significant impact on
trading.
Mark Lavery
Chief Executive
Finance Director's report
Overview
Total revenues in the period decreased 20.3% to GBP524.0m from
GBP657.8m in the prior year. New vehicle unit volumes were down
26.3% and new vehicle revenues were down 25.7%. Used car revenue
decreased by 16.7% with units reduced by 20.9%. Revenues from the
aftersales businesses decreased by 14.7%, compared with the
previous year.
Total gross profit decreased by GBP12.0m (15.9%) from GBP75.1m
to GBP63.1m in the year. Gross profit margin across the Group
improved 0.6% to 12.0%. The revenue mix saw an increase in used
cars and aftersales with new cars a reducing proportion of revenue.
The average selling price of both new and used cars increased year
on year, as did the average profit per new and used units that we
sold. There was an improvement in the new car margin to 7.2%, an
improvement in used car margin to 8.5% and margin improvement in
aftersales to 39.6%. The aftersales operations contributed 41.2% of
the total gross profit for the Group. The gross profit contribution
made by the used car and aftersales components of the business
accounted for 75.1% of the Group's total gross profit mix.
During the year, the Group had non-recurring expenses of GBP1.0m
(2018/19 net income of GBP0.2m). These related to the acquisition
of the businesses of GBP0.14m and reorganisation costs of
GBP0.81m.
The adoption of IFRS 16 has had a material impact on the
calculation of EBITDA. In order to make sure that there is
transparency and comparability we have provided a full
reconciliation of EBITDA in Note 3. The comparable Underlying
EBITDA (before IFRS 16 impact) was GBP16.2m in the period, slightly
down from GBP17.1m in the previous year. Following adoption of IFRS
16 the Underlying EBITDA for the period was GBP18.8m because of the
significant add back of depreciation on the right of use asset
(GBP2.07m), Finance expense resulting from the Lease liability
(GBP0.3m) and the fact that it doesn't include rent payments of
GBP2.5m. Whilst I do not personally agree with IFRS 16 or what it
does to a set of accounts and readers' perception of EBITDA, we
have included both measures for clarity.
Underlying operating profit was GBP13m, compared with GBP13.6m
in the previous year, resulting in an underlying operating margin
of 2.5% (2018/19: 2.1%).
Net finance expenses increased to GBP1.9m (2018/19: GBP1.4m).
IFRS 16 impacts this also and this split of the GBP1.9m expense
represents third party interest costs of GBP1.6m and interest on
lease liabilities of GBP0.3m.
The Group's underlying profit before tax decreased by 9.8% to
GBP11.1m, compared with GBP12.3m in the previous year.
Underlying earnings per share were 8.99p (2018/19: 9.78p). Basic
earnings per share were 8.22p (2018/19: 9.95p) and the Group's
underlying return on shareholders' funds for the year was 13.1%
(2018/19: 16.0%).
Taxation
The Group tax charge was GBP1.97m (2018/19: GBP2.5m)
representing an effective rate of tax of 19.3% (2018/19: 20.3%) on
a profit before tax of GBP10.2m (2018/19: GBP12.5m). As outlined in
last year's report, it is anticipated that the tax rate will
continue at a substantially normal effective tax rate.
Financial position
The Group has a robust balance sheet with a net asset position
of GBP71.7m underpinned by GBP81.3m of freehold property (fixed
assets and assets held for resale) which are held on a historic
cost basis.
In November 2017, the Group entered into revised Banking
facilities and as a result, the GBP40m Revolving Credit Facility
has no fixed capital repayment profile throughout its five year
term.
The cost of the facilities is LIBOR plus a margin. The margin
attributable to the term loans will be set each quarter and is
dependent on the net debt: EBITDA ratio for the Group. The spread
of margin chargeable against the facility ranges from 1.2% where
the net debt is less than 1 times EBITDA, up to 2% where the net
debt is greater than 2.5 times EBITDA.
The net cash position of the Group as at 31 August 2020 was
GBP3.5m (2018/19: net debt GBP3.8m), reflecting a cash position of
GBP5.6m (31 August 2019: GBP26.3m) and debt position of GBP2.1m
(2018/19: GBP30.1m).
The Group typically uses bank facilities to fund the purchase of
freehold and long leasehold properties, stocking loans to fund the
acquisition of consignment, demonstrator and used vehicles and has
a GBP10m overdraft facility which is available to manage seasonal
fluctuations in working capital. The overdraft facilities are
renewable annually and are next due on 31 January 2021.
Cash flow and capital expenditure
The Group generated an operating cash inflow of GBP16.4m with
working capital reducing by GBP1.9m through efficient management of
the vehicle inventory and the stocking lines associated with that
inventory. Total funds invested in capital expenditure and
acquisitions were GBP5.4m.
During the year the material investments were:
-- Purchase of Solihull Land for Aston Martin dealership development - GBP1.9m
-- Acquisition of Aston Martin Edinburgh freehold - GBP1.6m
-- Planning and land enhancement - GBP0.6m
-- Other minor refurbishments - GBP0.5m
The Group has had the RCF drawn to varying degrees throughout
the year primarily to ensure that the Group had sufficient
liquidity during the lockdown period. At the period end the Group
had GBP2.1m drawn having repaid a net GBP30m during the period.
As a result of the net cash outflow of GBP20.6m, the gross cash
position was GBP5.8m with gross debt of GBP2.1m and overall net
cash of GBP3.5m compared with net debt at 31 August 2019 of
GBP3.8m.
Capital expenditure commitments
As outlined in previous Chief Executive's reports, the Group has
committed to delivering property solutions to ensure the acquired
businesses over the past few years comply with the franchise
standards for its brand partners. Over the coming few years, the
Group intends to complete the following major freehold investments;
Solihull Aston Martin at c.GBP3m, Brentwood Jaguar Land Rover,
Aston Martin, Bentley and Lamborghini c.GBP16m. The developments
will be funded through a drawdown of RCF and existing cash.
The Board is committed to these investments and anticipates that
by making the investments it will put the Group in a strong
position to realise the full operational potential of the
businesses.
IFRS 16 Impact
IFRS 16 Leases is effective for the first time in the current
financial year and has been adopted by the Group.
The standard sets out the principles for the recognition,
measurement, presentation and disclosure of leases and requires
lessees to recognise most leases on the balance sheet. Lessor
accounting is substantially unchanged from IAS 17 and therefore
IFRS 16 does not have an impact for leases where the Group is a
lessor.
The Group adopted IFRS 16 for the first time using the modified
retrospective approach with an effective date of 1 September 2019.
The Group elected to use the practical expedient on transition to
not reassess whether a contract is, or contains, a lease at 1
September 2019. Instead the Group applied the standard only to
contracts that were previously identified as leases applying IAS 17
and IFRIC 4 at the date of application.
The Group also elected to use the recognition exemptions for
lease contracts that, at the transition date, have a lease term of
12 months or less and do not contain a purchase option (short-term
leases) and, lease contracts for which the underlying asset is of
low value (low-value assets). The incremental borrowing rate
applied to the lease liabilities on 1 September 2019 was 4.0%.
Upon adoption of IFRS 16, the Group applied a single recognition
and measurement approach for all leases for which it is the lessee,
except for short-term leases and leases of low-value assets. The
Group recognised lease liabilities to make lease payments and
right-of-use assets representing the right to use the underlying
assets. In accordance with the modified retrospective method of
adoption, the Group applied IFRS 16 at the date of initial
application as if it had already been effective at the commencement
date of existing lease contracts.
As at 1 September 2019:-
-- Right-of-use assets of GBP5,982,000 were recognised;
-- Lease liabilities of GBP8,517,000 were recognised;
-- Trade and other receivables relating to operating leases of GBP68,000 were recognised;
-- Deferred tax liabilities decreased by GBP249,000 due to the
deferred tax impact of the changes in recognition of the related
assets and liabilities;
-- Provisions reduced by GBP1,000,000 in respect of onerous
lease provision no longer recognised;
-- Retained earnings decreased GBP1,218,000 as a result of the
net impact of these adjustments.
Shareholders' funds
There are 100,000,000 ordinary shares of 10p each with an
associated share premium account of GBP0.8m. There were no new
funds raised during the year; therefore the share capital and share
premium account remain at GBP10.8m, consistent with the prior year.
All ordinary shares rank pari passu for both voting and dividend
rights.
Pension schemes
The Group does not operate any defined benefit pension schemes
and has no liability arising from any such scheme. The Group made
contributions amounting to GBP0.6m (2018/19: GBP0.6m) to defined
contributions schemes for certain employees.
Financial instruments
The Group does not have any contractual obligation under any
financial instruments with respect to the hedging of interest rate
risk.
Dividends
As outlined in the Chairman's report and as previously advised,
the Board has suspended payment of dividends and therefore does not
propose a dividend for the financial year to 31 August 2020.
James Mullins
Finance Director
Consolidated statement of comprehensive income
for year ended 31 August 2020
Note 2020 2019
GBP000 GBP000
Revenue 2 524,016 657,777
Cost of sales (460,932) (582,723)
Gross profit 3 63,084 75,054
Administrative expenses (51,039) (61,188)
Results from operating
activities 3 12,045 13,866
Finance income 7 51 64
Finance expenses 7 (1,911) (1,435)
Net finance expenses (1,860) (1,371)
Profit before tax from operations
before non-recurring (expense)
/ income 11,143 12,276
Net non-recurring income
and expenses 4 (958) 219
-------------------------------- -------- --------- --------------
Profit before tax 3 10,185 12,495
Taxation 8 (1,969) (2,542)
Profit and total comprehensive
income for the period 8,216 9,953
Basic earnings per share 6 8.22p 9.95p
Diluted earnings per
share 6 8.17p 9.93p
All comprehensive income is attributable to owners of the Parent
Company.
Consolidated statement of changes in equity
for year ended 31 August 2020
Share capital Share premium Retained Total equity
earnings
GBP000 GBP000 GBP000 GBP000
Balance at 31 August
2018 10,000 799 45,828 56,627
Profit for the year - - 9,953 9,953
Dividend paid - - (1,000) (1,000)
Balance at 31 August
2019 10,000 799 54,781 65,580
Impact of adoption
of IFRS 16 - - (1,218) (1,218)
Balance at 31 August
2019 - restated 10,000 799 53,563 64,362
Profit for the year - - 8,216 8,216
Dividend paid - - (850) (850)
Balance at 31 August
2020 10,000 799 60,929 71,728
Consolidated statement of financial position
at 31 August 2020
Note 2020 2019
GBP000 GBP000
Non-current assets
Property, plant and equipment 9 86,943 85,336
Intangible assets 10 21,527 21,478
Right-of-use asset 18 6,509 -
Finance lease receivables 18 118 -
115,097 106,814
Current assets
Inventories 12 83,588 112,804
Trade and other receivables 13 9,085 12,051
Finance lease receivables 18 68 -
Cash and cash equivalents 5,645 26,299
Property assets classified
as held for resale 14 899 899
99,285 152,053
Total assets 214,382 258,867
Current liabilities
Trade and other payables 16 (126,546) (157,750)
Lease liabilities 18 (2,496) -
Contract liabilities 17 (1,604) (2,379)
Current tax liability (1,271) (1,297)
Provision 21 (236) (459)
(132,153) (161,885)
Non-current liabilities
Borrowings 15 (2,122) (30,088)
Lease liabilities 18 (6,303) -
Provisions 21 - (877)
Contract liabilities 17 (1,641) -
Deferred tax liabilities 11 (435) (437)
(10,501) (31,402)
Total liabilities (142,654) (193,287)
Net assets 71,728 65,580
Equity attributable to equity holders
of the parent
Share capital 22 10,000 10,000
Share premium 799 799
Retained earnings 60,929 54,781
Shareholders' equity 71,728 65,580
Consolidated cash flow statement
for year ended 31 August 2020
Notes 2020 2019
GBP000 GBP000
Cash flows from operating activities
Profit for the year 8,216 9,953
Adjustments for:
Depreciation, amortisation
and impairment 9,10,18 5,779 3,437
Financial income 7 (51) (64)
Financial expense 7 1,911 1,435
Profit/(loss) on disposal of
fixed assets - (414)
Taxation 8 1,969 2,542
Non-recurring (income)/expenses 4 958 (219)
18,782 16,670
Change in trade and other receivables 2,846 (609)
Change in inventories 29,216 (23,129)
Change in payables, deferred
income and provisions (30,191) 31,607
20,653 24,539
Interest paid (1,303) (841)
Tax paid (1,994) (1,714)
Non-recurring income / expenses 4 (962) 219
Net cash from operating activities 16,394 22,203
Cash flows from investing activities
Interest received 51 64
Proceeds from sale of plant
and equipment 31 2,917
Purchase of property, plant and
equipment and software (3.668) (21,907)
Acquisition of subsidiary (net
of cash acquired) 24 (56) -
Acquisition of business (net
of cash acquired) 24 (1,671) -
Net cash from investing activities (5,313) (18,926)
Cash flows from financing activities
Proceeds from new loan - 9,000
Interest paid (608) (495)
Repayment of borrowings (27,966) -
Lease payments 18 (2,311) -
Dividend paid 22 (850) (1,000)
Net cash from financing activities (31,735) 7,505
Net (decrease)/increase in
cash and cash equivalents (20,654) 10,782
Cash and cash equivalents at
1 September 2019 26,299 15,517
Cash and cash equivalents at
31 August 2020 5,645 26,299
Notes to the consolidated accounts
(forming part of the financial
statements)
1 Accounting policies
These financial statements as at 31 August 2020 consolidate
those of the Company and its subsidiaries (together referred to as
the "Group"). The Parent Company financial statements present
information about the Company as a separate entity and not about
its group.
International Financial Reporting Standards
IFRS 16 Leases is effective for the first time in the current
financial year and has been adopted by the Group.
IFRS 16 supersedes IAS17. The standard sets out the principles
for the recognition, measurement, presentation and disclosure of
leases and requires lessees to recognise most leases on the balance
sheet. Lessor accounting is substantially unchanged from IAS 17 and
therefore IFRS 16 does not have an impact for leases where the
Group is a lessor.
The Group adopted IFRS 16 for the first time using the modified
retrospective approach with an effective date of 1 September 2019.
The Group elected to use the practical expedient on transition to
not reassess whether a contract is, or contains, a lease at 1
September 2019. Instead the Group applied the standard only to
contracts that were previously identified as leases applying IAS 17
and IFRIC 4 at the date of application. The Group also elected to
use the recognition exemptions for lease contracts that, at the
transition date, have a lease term of 12 months or less and do not
contain a purchase option (short-term leases) and, lease contracts
for which the underlying asset is of low value (low-value assets).
The incremental borrowing rate applied to the lease liabilities on
1 September 2019 was 4.0%.
International Financial Reporting Standards (continued)
Upon adoption of IFRS 16, the Group applied a single recognition
and measurement approach for all leases for which it is the lessee,
except for short-term leases and leases of low-value assets. The
Group recognised lease liabilities to make lease payments and
right-of-use assets representing the right to use the underlying
assets. In accordance with the modified retrospective method of
adoption, the Group applied IFRS 16 at the date of initial
application as if it had already been effective at the commencement
date of existing lease contracts.
As at 1 September 2019:-
-- Right-of-use assets were recognised and presented on the face
of the consolidated statement of financial position;
-- Additional lease liabilities were recognised and presented on
the face of the consolidated statement of financial position;
-- Trade and other receivables relating to operating leases were de-recognised;
-- Deferred tax liabilities decreased due to the deferred tax
impact of the changes in recognition of the related assets and
liabilities;
-- Provisions reduced in respect of onerous lease provision no longer recognised;
-- Retained earnings decreased as a result of the net impact of these adjustments.
31 August 1 September
2020 2019
GBP000 GBP000
Assets
Right-of-use assets 6,509 5,982
Finance lease receivable 186 251
Other receivables (198) (183)
Total assets 6,497 6,050
Liabilities
Lease liabilities (8,799) (8,517)
Provisions 1,000 1,000
Deferred tax liabilities 206 249
Total liabilities (7,593) (7,268)
Net assets (1,096) (1,218)
Equity
Retained earnings (1,096) (1,218)
Impact on the consolidated statement of comprehensive income
(increase/(decrease)):
31 August
2020
GBP000
Administrative expenses
Rent (2,547)
Depreciation 2,066
Results from operating activities 481
Finance income 8
Finance expense (324)
Taxation 43
Profit for the period 122
Retained earnings on transition (1,218)
Retained earnings carried forward (1,096)
Impact on the consolidated cash flow statement
increase/(decrease)):
31 August
2020
GBP000
Operating lease payments 2,635
Interest paid - net (324)
Net cash flows from operating activities (2,311)
Payment of lease liabilities 2,311
Net cash flows from financing activities 2,311
A reconciliation of the total operating lease commitments to the
IFRS 16 lease liability at 1 September 2019 is as follows:
1 September
2019
GBP000
Operating lease commitments - 31 August
2019 9,225
Effect of discounting (1,042)
Other lease adjustment 334
Lease liabilities recognised 8,517
The following accounting standards and interpretations, issued
by the IASB and endorsed by the EU or International Financial
Reporting Interpretations Committee (IFRIC), are effective for the
first time in the current financial year and have been adopted by
the Group with no significant impact on the consolidated results or
financial position:
-- Annual Improvements to IFRSs - 2015-2017 Cycle (effective date 1 January 2019)
-- Amendments to IAS 28 - Investments in Associates and Joint
Ventures (effective date 1 January 2019)
-- IFRIC 23 - Uncertainty over Income Tax Treatments (effective date 1 January 2019)
-- Amendments to IFRS 9 - Prepayment features with negative
compensation (effective date 1 January 2019)
-- Amendment to IAS 19 - Plan amendment, curtailment or
settlement (effective date 1 January 2019)
-- Covid-19-Related Rent Concessions (Amendment to IFRS 16) - early implementation
The IASB and the IFRIC have also issued the following standards
and interpretations with an effective date after the date of these
Financial Statements and which therefore have not been applied in
the current period. No significant impact is anticipated from the
introduction of these standards in future periods:
New standards and interpretations endorsed but not yet
effective:
-- Amendments to IAS1 & IAS 8 - definition of material (effective date 1 January 2020)
-- Amendment to IFRS 3 - definition of business combination (effective date 1 January 2020)
-- Amendments to references to the conceptual Framework in IFRS
Standards (effective date 1 January 2020)
New standards and interpretations not yet endorsed and not yet
effective:
-- IFRS 17 - Insurance contracts (effective 1 January 2023)
-- Annual Improvements to IFRSs - 2018-2020 Cycle
-- Reference to the Conceptual Framework (Amendments to IFRS 3)
-- Amendments to IFRS 17 and Extension of the Temporary
Exemption from Applying IFRS 9 (Amendments to IFRS 4)
-- Interest Rate Benchmark Reform - Phase 2 (Amendments to IFRS
9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)
-- Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
-- Property, Plant and Equipment - Proceeds before Intended Use (Amendments to IAS 16)
-- Onerous Contracts - Cost of Fulfilling a Contract (Amendments to IAS 37)
2 Revenue
The Group derives its revenue from contracts with customers for
the transfer of goods and services over time and at a point in time
in the following major product lines. This is consistent with the
revenue information that is disclosed for each reportable segment
under IFRS 8 Operating Segments (see note 3). Set out below is the
disaggregation of the Groups revenue from contracts with
customers:
2020 2019
GBP000 GBP000
Sale of new cars 218,280 293,805
Sale of used cars 252,239 302,749
Aftersales services 65,650 76,944
Internal sales (12,153) (15,721)
Total revenues 524,016 657,777
Timing of revenue recognition
The Group recognises all income at a point in time when the
performance obligations are satisfied and has not identified any
significant income recognised over time or received in advance of
performance obligations.
Goods and services transferred at a point
in time 522,246 656,838
Goods and services transferred over time 1,770 939
Total revenues 524,016 657,777
3 Segmental reporting
The Group has adopted IFRS 8 'Operating Segments' which
determines and presents operating segments based on information
presented to the Group's Chief Operating Decision Maker ("CODM"),
the Chief Executive Officer. The Group is operated and managed on a
Dealership by Dealership basis. Dealerships operate a number of
different business streams such as new vehicle sales, used vehicle
sales and after sales operations. Management is organised based on
the dealership operations as a whole rather than the specific
business streams. Dealerships are considered to have similar
economic characteristics and offer similar products and services
which appeal to a similar customer base. As such the results of
each dealership have been aggregated to form one reportable
operating segment.
All segment revenue, profit before tax, assets and liabilities
are attributable to the principal activity of the Group being the
provision of car vehicle sales, vehicle servicing and related
services. Therefore to increase transparency, the Group has
included below additional voluntary disclosure analysing revenue
and gross margins within the reportable segment.
2020 2020 2020 2020 2019 2019 2019 2019
Revenue Revenue mix Gross profit Margin Revenue Revenue mix Gross profit Margin
GBPm % GBPm % GBPm % GBPm %
New Car 218.3 41.7 15.7 7.2 293.8 44.7 20.6 7.0
Used Car 252.2 48.1 21.4 8.5 302.8 46.0 25.1 8.3
Aftersales 65.6 12.5 26.0 39.6 76.9 11.7 29.3 38.1
Internal
sales (12.1) (2.3) (15.7) (2.4) - -
Total 524.0 100.0 63.1 12.0 657.8 100.0 75.1 11.4
Administrative expenses (50.1) (61.4)
Operating profit before
non-recurring expenses 13.0 13.7
Non-recurring income/
(expenses) (1.0) 0.2
Operating profit 12.0 13.9
The CODM reviews the performance of the business in terms of
both net profit before tax and EBITDA, as such the following table
shows a reconciliation of the Profit before tax to EBITDA.
The EBITDA in the period varies significantly with the prior
year comparative as a result of the transition to IFRS 16 lease
accounting which reverses operating lease expenses and replaces it
with Depreciation on the right of use assets and finance expenses
in relation to the lease liability for those leased assets.
2020 2019
GBP000 GBP000
Profit Before Tax 10,185 12,495
Non-recurring (income) expenses
(note 4) 958 (219)
Underlying Profit Before Tax 11,143 12,276
Net finance expense 1,544 1,371
Net finance Expense IFRS 16 316 -
Depreciation and amortisation 3,713 3,437
Depreciation - Right of use asset 2,066 -
Underlying EBITDA 18,782 -
Net lease payments - pre IFRS (2,547) -
16
Underlying EBITDA excluding transition
to IFRS 16 16,235 17,084
Non-recurring income (expenses) (958) 219
EBITDA 17,824 -
Lease payments - pre IFRS 16 (2,547) -
EBITDA excluding transition to
IFRS 16 15,277 17,303
4 Non-recurring expense/ (income)
Non-recurring income and expenses are items which derive from
events or transactions that are outside the normal course of
business, and do not directly relate to the on-going operations,
therefore have been separately disclosed in order for the financial
statements to present a true and fair view.
2020 2019
GBP000 GBP000
Profit on disposal of property held
for re-sale - 414
Site closures costs (12) (195)
Acquisition costs (see note 24) (138) -
Reorganisation costs (812) -
Profit on disposal of fixed assets 4 -
(958) 219
During the COVID-19 lockdown period the Group undertook a
detailed review of the business structure and operating costs. As a
result of the operating impact of the pandemic, the Board took the
decision to implement a rationalisation programme which led to a
significant reduction in the number of Associates through a
redundancy programme. The one-off cost of this relating to
redundancy programme was GBP812,000.
5 Staff numbers and costs
The average number of persons employed by the Group (including
directors) during the year, analysed by category, was as
follows:
Number of employees
2020 2019
Sales 307 338
Service 397 424
Parts 73 79
Administration 237 235
1,014 1,076
The above analysis is stated based on the average number of persons
employed during the year and does not reflect the number employed
following the rationalisation programme.
The aggregate payroll costs of these persons were as
follows:
GBP000 GBP000
Wages and salaries 32,096 34,996
Social security costs 3,149 3,433
Expenses related to defined contribution
plans 550 558
Share based payments expense 19 32
35,814 39,019
The Wages and salaries analysis is stated without deduction of
the Government Grant of GBP4.1m.
6 Earnings per share
Basic earnings per share are calculated by dividing the earnings
attributable to equity shareholders by the number of ordinary
shares in issue in the year. There is one class of ordinary share
with 100,000,000 shares in issue.
The Underlying Return on Equity number has been calculated as
the adjusted profit attributable to equity shareholders divided by
the unweighted average shareholder funds taking the average of the
opening and closing shareholders equity from the statement of
financial position. The calculation is therefore GBP8,992,000
divided by GBP68,654,000 giving 13.1%.
Basic earnings per share
2020 2019
GBP000 GBP000
Profit attributable to shareholders 8,216 9,953
Non-recurring (income)/ expenses (Note
4) 958 (219)
Tax on adjustments (at 19% (2019: 19%)) (182) 41
Adjusted profit attributable to equity
shareholders 8,992 9,775
Number of shares in issue ('000) 100,000 100,000
Basic earnings per share 8.22p 9.95p
Adjusted basic earnings per share 8.99p 9.78p
Diluted earnings per share
During the period the Group cash settled a number of the vested
share options and the performance conditions relating to certain
other share options were satisfied and therefore 604,662 share
options are considered dilutive at the year-end.
2020 2019
GBP000 GBP000
Profit attributable to shareholders 8,216 9,953
Number of shares in issue ('000) 100,000 100,000
Effect of dilutive share options ('000) 604 189
100,604 100,189
Diluted earnings per share 8.17p 9.93p
7 Finance income and expense
Recognised in the income statement
2020 2019
GBP000 GBP000
Finance income
Interest receivable 43 64
Interest on finance leases receivable 8 -
Total finance income 51 64
Finance expense
Interest payable on bank borrowings 608 594
Interest on lease liabilities 324 -
Consignment and vehicle stocking interest 979 841
Total finance expense 1,911 1,435
Total interest expense on financial liabilities
held at amortised cost 932 594
Total other interest expense 979 841
1,911 1,435
8 Taxation
Recognised in the income statement
2020 2019
GBP000 GBP000
Current tax expense
Current year 1,777 2,289
Adjustment in respect of prior years (55) 1
1,722 2,290
Deferred tax
Adjustment in respect of prior years (31) 79
Origination and reversal of temporary differences 278 173
247 252
Total tax expense 1,969 2,542
Reconciliation of total tax
2020 2019
GBP000 GBP000
Profit for the year 8,216 9,953
Total tax expense 1,969 2,542
Profit excluding taxation 10,185 12,495
Tax using the UK corporation tax rate
of 19% (2019: 19%) 1,935 2,374
Non-deductible expenses 9 15
Accounting deprecation for which no tax
relief is due 99 130
Tax losses brought forward utilised (18) (63)
Change in tax rate 32 (24)
On capital disposals - 33
Prior year movements (86) 80
Other differences (2) (3)
Total tax expense 1,969 2,542
The applicable tax rate for the current year is 19% (2019:
19%).
Reductions to 17% (effective 1 April 2020) was substantively
enacted on 6 September 2017 and was subsequently cancelled on 11
March 2020.
9 Property, plant and equipment
Assets Long Short leasehold Fixtures,
Freehold under leasehold improvements fittings
land & construction land Plant & computer
buildings & buildings & equipment equipment Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Cost
Balance at 1 September
2018 50,590 5,392 10,779 2,182 4,419 9,461 82,823
Additions 17,376 194 - 23 1,316 2,956 21,865
Disposals - - - (661) (442) (814) (1,917)
Reclassification 16,171 (5,392) (10,779) - - - -
Balance at 1 September
2019 84,137 194 - 1,544 5,293 11,603 102,771
Additions 2,613 - - 38 230 707 3,588
On acquisition 1,580 - - - 70 - 1,650
Disposals - - - - (117) (452) (569)
Balance at 31 August
2020 88,330 194 - 1,582 5,476 11,858 107,440
Depreciation
Balance at 1 September
2018 4,770 - 917 2,107 2,468 5,511 15,773
Charge for the year 1,108 - 74 81 503 1,606 3,372
Disposals - - - (661) (322) (727) (1,710)
Reclassification 991 - (991) - - - -
Balance at 1 September
2019 6,869 - - 1,527 2,649 6,390 17,435
Charge for the year 1,303 - - 29 662 1,610 3,604
Disposals - - - - (91) (451) (542)
Balance at 31 August
2020 8,172 - - 1,556 3,220 7,549 20,497
Net book value
At 31 August 2019 77,268 194 - 17 2,644 5,213 85,336
At 31 August 2020 80,158 194 - 26 2,256 4,309 86,943
As at 31 August 2020 the Group developing planning applications
for both the Solihull Aston Martin Dealership and the Brentwood
development. There were no committed contracts in place at the
balance sheet date. (2019: GBPNil).
The Directors have considered the property portfolio for
impairment by comparing the carrying amount to the higher of value
in use or market value and have concluded that no impairment is
required.
Security
The title of all freehold properties have been pledged as
security to the Revolving Credit Facility disclosed in note 15.
10 Intangible assets
Goodwill Software Other Total
GBP000 GBP000 GBP000 GBP000
Cost
Balance at 1 September
2018 21,346 988 176 22,510
Additions - 42 - 42
Disposals - (180) - (180)
Balance at 1 September
2019 21,346 850 176 22,372
Additions - 77 - 77
On acquisition 60 21 - 81
Disposals (2) - (2)
Balance at 31 August 2020 21,406 946 176 22,528
Amortisation and impairment
Balance at 1 September
2018 - 833 176 1,009
Amortisation for the year - 65 - 65
Disposals - (180) - (180)
Balance at 1 September
2019 - 718 176 894
Amortisation for the year - 109 - 109
Disposals - (2) - (2)
Balance at 31 August 2020 - 825 176 1,001
Net book value
At 31 August 2019 21,346 132 - 21,478
At 31 August 2020 21,406 121 - 21,527
Amortisation charge
The amortisation charge is recognised in the following line
items in the income statement:
2020 2019
GBP000 GBP000
Administrative expenses 109 65
Impairment loss and subsequent reversal
Goodwill and indefinite life intangible assets considered
significant in comparison to the Group's total carrying amount of
such assets have been allocated to cash generating units or Groups
of cash generating units. For the purpose of impairment testing of
goodwill and other indefinite life assets, the Directors recognise
the Group's cash generating units ("CGU") to be connected groupings
of dealerships. The identified CGUs, grouped for allocation of
goodwill are as follows:
Goodwill
2020 2019
GBP000 GBP000
Multiple units without significant goodwill 406 346
Jaguar Land Rover ("JLR") 21,000 21,000
21,406 21,346
The recoverable amount of the JLR CGU has been calculated with
reference to its value in use. These calculations use projections
based on financial budgets approved by the Board of Directors which
are extrapolated using an estimated growth rate. The budgets were
prepared to 31 August 2021 and then projected for a further 4
years. The underlying expected performance of the CGU gives
sufficient headroom using conservative assumptions, a growth rate
of 0% was applied, and a terminal value was included with a 0%
growth rate in perpetuity. The discount rate used is 8%.
Management has also performed a review of forecast EBITDA for
the CGU for a number of years based on the EBITDA multiples being
paid for equivalent businesses in the marketplace. The Board
reviews transactional information and assesses the businesses
earnings capacity in order to ensure that the recoverable amount is
in excess of the carrying amount.
Sensitivity to changes in assumptions
The estimated recoverable amounts for the JLR CGU exceeds the
carrying amounts by approximately GBP52m (2019: GBP73m). The Group
has conducted sensitivity analysis on the impairment testing.
Management believe no significant change in the key assumptions
would cause the carrying amount to exceed the recoverable amount
for the CGU.
The value in use exceeds the above carrying values for each CGU,
therefore no impairment is considered necessary.
11 Deferred tax assets and liabilities
Recognised deferred tax assets and liabilities
The amount of temporary differences, unused tax losses and tax
credits for which a deferred tax asset is recognised is set out
below, along with the movement in the balance in the year. The
asset would be recovered if offset against future taxable profits
of the Group.
1 September Net 31
2019 Recognised August Deferred Deferred
As restated in income 2020 tax liabilities tax assets
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Property, plant
and equipment (467) - (19) (486) (486)
Capital gain - (218) (218) (218)
On transition to
IFRS - 249 (43) 206 - 206
Provisions 25 - 32 57 - 57
Share options 5 - 1 6 - 6
(437) 249 (247) (435) (704) 269
=========== ============ ========== ======= ================ ===========
Unrecognised deferred tax assets and liabilities
The deferred tax asset in relation to loss carried forward
within a subsidiary has not been recognised due to uncertainty over
the future profitability of the subsidiary, these losses are locked
in to this particular subsidiary and cannot be utilised in the
wider Group.
Assets
2020 2019
GBP000 GBP000
Tax value of loss carry-forwards 174 167
Unrecognised net tax assets 174 167
12 Inventories
2020 2019
GBP000 GBP000
Vehicle consignment stock 45,490 63,628
Motor vehicles 35,966 46,327
Parts and other stock 2,132 2,849
83,588 112,804
Included within inventories is GBPnil (2019: GBPnil) expected to
be recovered in more than 12 months.
Raw materials, consumables and changes in finished goods and
work in progress recognised as cost of sales in the year amounted
to GBP460 million (2019: GBP581 million). This includes inventory
write downs of GBP161,694 and reversals of previous write downs of
GBP454,743.
Details of stock held as security is given in note 16.
13 Trade and other receivables
2020 2019
GBP000 GBP000
Trade receivables 6,608 8,864
Prepayments and other receivables 2,477 3,187
9,085 12,051
Included within trade and other receivables is GBPnil (2019:
GBPnil) expected to be recovered in more than 12 months.
14 Property assets classified as held for resale
On closure of the Blackburn dealership, the Freehold property
has been transferred to assets held for resale at its net book
value. There were no movements during the year.
15 Borrowings
This note provides information about the contractual terms of
the Group's interest-bearing loans and borrowings, which are
measured at amortised cost.
2020 2019
GBP000 GBP000
Non-current liabilities
Revolving Credit Facility 2,122 30,088
Current liabilities
Revolving Credit Facility - -
Terms and debt repayment schedule
All debt is in GBP currency
Nominal interest Year of Value and Carrying Value and
rate Maturity Amount Carrying Amount
2020 2019
GBP000 GBP000
Revolving
Credit Facility LIBOR +1.20%* 2022 2,122 30,088
2,122 30,088
*The Facilities arranged in November 2017 have different margin
bandings that are dependent on the net debt: EBITDA ratio for
the previous quarter. The margin is 1.2% where the ratio is below
1 times, increasing to 2% where the ratio is in excess of 2.5
times.
16 Trade and other payables
2020 2019
GBP000 GBP000
Current
Vehicle consignment creditor 53,933 75,863
Other trade payables 7,744 10,099
Non-trade payables and accrued expenses 32,878 26,028
Vehicle funding 31,991 45,760
126,546 157,750
Included within trade and other payables is GBPnil (2019:
GBPnil) expected to be settled in more than 12 months. Both the
consignment and vehicle funding creditors are secured on the stock
to which they relate.
17 Contract liabilities
2020 2019
GBP000 GBP000
At 1 September 2019 2,379 683
Created in the year 2,636 2,635
Recognised as income during the year (1,770) (939)
At 31 August 2020 3,245 2,379
Current 1,604 2,379
Non-current 1,641 -
3,245 2,379
Contract liabilities represents deferred income in relation to
vehicle repair and maintenance products. Policies can be taken out
over periods of up to 36 months with income received on inception
of the policy. The policy covers replacement and repair of
mechanical, electrical and cosmetic parts, the cost of labour to
fit them and breakdown assistance for the period of the policy.
When the income is received it is recognised initially as deferred
income and is released to income statement over the life of the
policy with consideration made for potential liabilities on a
pooled basis.
18 Leases
The Group has lease contracts for certain of the land and
buildings from which it operates. Terms can vary significantly
between property and the leases at the year-end had up to ten years
remaining, with some leases due to end within 12 months. In
addition, the Group uses short-term leases (less than 12 months
term) where considered appropriate to its requirements and takes
advantage of the recognition exemptions for such leases.
Right-of-use assets Land &
buildings Total
GBP000 GBP000
Cost
Balance at 1 September - -
2019
Transition to IFRS 16 5,982 5,982
Balance at 1 September
2019 - as restated 5,982 5,982
Additions 549 549
On acquisition 2,044 2,044
Balance at 31 August 2020 8,575 8,575
Depreciation
Balance at 1 September - -
2019
Charge for the year 2.066 2.066
Balance at 31 August 2020 2,066 2,066
Net book value
At 31 August 2020 6,509 6,509
Lease liabilities Land & Total
buildings
GBP000 GBP000
Balance at 1 September - -
2019
On transition to IFRS 16 8,517 8,517
Balance at 1 September
2019 - as restated 8,517 8,517
Additions 549 549
On acquisition 2,044 2,044
Interest expense 324 324
Payments (2,635) (2,635)
Balance at 31 August 2020 8,799 8,799
GBP000 GBP000
Current liabilities 2,496 2,496
Non-current liabilities 6,303 6,303
8,799 8,799
Maturity analysis 31 August
2020
GBP000
On demand -
Within 1 year 2,751
Between 1 to 2 years 2,255
Between 2 to 5 years 3,375
Over 5 years 1,089
Total undiscounted liabilities 9,470
(671)
Lease liabilities in the
financial statements 8,799
Amounts recognised in the statement of comprehensive income as
an expense during the period in respect of lease arrangements are
as follows:
2020 2019
GBP000 GBP000
Lease payments under operating leases - 2,815
Expense relating to short-term leases 135 -
Expense relating to leases of low-value
assets 42 -
Income relating to variable lease payments
not included in lease liabilities (105) -
Depreciation 2,066 -
Interest 324 -
The fair value of the Group's lease obligations is approximately
equal to their carrying amount.
Set out below are the future cash outflows to which the lessee
is potentially exposed that are not reflected in the measurement of
lease liabilities:
Land and buildings 2020 2019
GBP000 GBP000
Less than one year 14 2,381
Between one and five years - 6,196
More than five years - 648
14 9,225
Operating leases apart 2020 2019
from land and buildings
GBP000 GBP000
Less than one year 54 -
Between one and five years 1 -
55
Finance lease receivables 2020 2019
- land and buildings
GBP000 GBP000
Within one year 74 -
Between one and five years 74 -
More than five years 48 -
Total undiscounted lease
payments receivable 196 -
Unearned finance income (10) -
Net investment 186 -
The present value is receivable
as follows:
Within one year 68 -
In two to five years 118 -
186 -
19 Employee benefits
Pension plans - Defined contribution plans
The Group operates a number of defined contribution pension
plans.
The total expense relating to these plans in the current year
was GBP550,000 (2019: GBP557,000).
20 Share-based payments
The Group has a share option scheme open to certain employees at
the discretion of the Board. Options are exercisable at a price
equal to the higher of the nominal value or market price of the
Company's shares on the date of grant.
In the scheme the options vest over a ten-year period, depending
on the terms of the individual grant. There are certain performance
criteria relating to shareholder return and the underlying profit
before tax of the Group which have to be achieved for the options
to be exercisable.
During the year ended 31 August 2020, no share options were
granted (2019: None).
The number and weighted average exercise prices of share options
are as follows:
Weighted Number Weighted Number
average of options average of options
exercise exercise
price price
2020 2020 2019 2019
GBP GBP
Outstanding at the beginning
of the year 0.48 4,500,000 0.49 5,000,000
Lapsed during the period 0.51 (500,000)
Cash settled during the year 0.48 740,000 -
Outstanding at the end of the
year 0.48 3,760,000 0.48 4,500,000
Exercisable at the end of the - -
year
The Company recognised an expense of GBP19,000 (year ended 31
August 2019: GBP32,000) in respect of share-based payments in the
year. The share price during the period ranged between 33p and
71.5p and averaged 55.1p for the period.
Based on the performance of the Group in the financial year to
31 August 2019, on 1 January 2020 the first tranche of the 2015
Share Option scheme became exercisable. The Board took the
Alternative Settlement Option contained within the scheme and Cash
settled the difference between the market value of the shares and
the exercise price. Based on the performance of the Group in the
year to 31 August 2020, 185,000 of the outstanding share options
have met the performance criteria and will become exercisable from
1 January 2021. Of those exercisable shares, 175,000 are in the
money based on the average share price throughout the financial
year and these have been included within the calculation of diluted
earnings per share.
Within one of the Group Subsidiaries, Repair and Maintenance
Plans Limited, the holders of the B Shares are, subject to meeting
specific performance criteria, entitled to exchange the B shares in
the subsidiary for shares in Cambria Automobiles plc. These have
been treated as Contingently Issuable Shares. At the end of the
year, the value of Cambria Automobiles plc shares to which the B
Shareholders were entitled based on the performance criteria
achieved was GBP295,918. Based on the share price at 31 August 2020
of 51p per share that equates to 580,231 shares. These shares have
been recognised in the calculation of Basic Earnings Per Share at
the year end when the contingent issuance criteria were met and
included in the calculation of Diluted Earnings Per Share
throughout the year. Provided that the specific performance
criteria contained within the shareholders agreement are met over
the life of the plan to 31 August 2024, the holders of the B Shares
may be entitled to a maximum further GBP1,878,802 in value of
Cambria Automobiles plc shares.
21 Provisions
Property
GBP000
Balance at 1 September
2019 1,336
On transition to IFRS 16 (1,000)
Balance at 1 September
2019 - as restated 336
Provisions utilised during
the year (100)
Provisions made in year -
Balance at 31 August 2020 236
Current 459
Non-current 877
Balance at 31 August 2019 1,336
Current 236
Non-current -
Balance at 31 August 2020 236
The provision at year end relates to the vacant properties at
Welwyn Garden City following the occupation of the Hatfield
development and the vacant Blackburn freehold property that is held
as an Asset for Resale.
22 Capital and reserves
Share capital
2020 2019
GBP000 GBP000
Authorised
100,000,000 Ordinary shares of 10 pence
each 10,000 10,000
Allotted, called up and fully paid
100,000,000 Ordinary shares of 10 pence
each 10,000 10,000
Shares classified in shareholders' funds 10,000 10,000
All of the shares rank pari passu, and no shareholder enjoys
different or enhanced voting rights from any other shareholder. All
shares are eligible for dividends and rank equally for dividend
payments.
Dividends
The following dividends were paid by the Company in the year
ended 31 August.
2020 2019
GBP000 GBP000
0.85p per ordinary share - prior year final
(2019: 0.75p) 850 750
Nil per ordinary share - current year interim
(2019: 0.25p) - 250
850 1,000
After the end of the reporting period, the following dividends
were proposed by the Directors. The dividends have not been
provided for and there are no tax consequences.
2020 2019
GBP000 GBP000
Nil p per ordinary share - current year
final (2019: 0.85p) - 850
23 Post balance sheet events
Dividend
Due to the impact of the COVID-19 pandemic and as announced in
March 2020, the Board has suspended dividend payments and therefore
the final dividend payment in respect of the financial year to 31
August 2020 is 0.0p (2019: 0.85p) per share in addition to the
interim payment of 0.0p per share (2019: 0.25p).
24 Acquisitions
Aston Martin and Rolls-Royce Motor Cars Edinburgh
On 21 January 2020, the Group announced the acquisition of the
trade and assets of the Aston Martin and Rolls-Royce Motor Cars
dealerships in Edinburgh for a total cash consideration of
GBP1.671m. Transactions fees, payroll arrears and rationalization
costs of GBP138,000 have been expensed through operating expenses
in the period.
Recognised
values
on acquisition
GBP000
Acquiree's Net Assets at the acquisition
date
Plant and equipment 70
Intangible Assets 21
Freehold Property 1,580
Right of use asset - property 2,044
Lease liabilities (2,044)
1,671
Goodwill on acquisition -
Total cash consideration 1,671
The acquisition contributed to GBP10,240,631 to revenue and
(GBP65,153) to profit before tax.
E-Warranty Limited
On 3 March 2020, the Group announced the acquisition E-Warranty
Limited a provider of IT software to the warranty industry for a
total cash consideration of GBP60,000.
Recognised
values
on acquisition
GBP000
Acquiree's Net Assets at the acquisition
date
Cash and cash equivalents 4
Trade and other receivables 17
Trade and other payables (16)
Tax liabilities (5)
Goodwill 60
Total cash consideration 60
The acquisition contributed to GBP76,954 to revenue and GBP499
to profit before tax.
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END
FR PPGPGGUPUGBC
(END) Dow Jones Newswires
November 25, 2020 02:00 ET (07:00 GMT)
Grafico Azioni Cambria Automobiles (LSE:CAMB)
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Grafico Azioni Cambria Automobiles (LSE:CAMB)
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