Cambria warns on sterling volatility as it posts gains in FY profit, dividend

22nd Nov 2016 12:06

(ShareCast News) - Shares in franchised motor retailer Cambria are down almost 9% as it warned on sterling's volatility after posting double-digit gains in full-year revenue, pre-tax profit and dividend.Chief executive Mark Lavery described the latest results as strong, but added it was too early to assess the full implications of UK's Brexit vote, which saw sterling plummet."Sterling exchange rate has been very volatile and in recent weeks reached its low point equivalent to summer 2011," Lavery said."The current volatility in sterling could impact the strategy adopted by the manufacturers that we represent," he added."The latest SMMT forecasts for new car registrations in 2017 show a 5% reduction on the 2016 closing forecast. From April 2016 to October 2016 there has been a 2.7% year on year reduction in the Private segment of the new car market."However, Lavery added that Cambria's directors were confident the company's business model was well positioned to take advantage of any opportunities that the current economic uncertainty could provide."The Board has set its focus for the new financial year on delivery of the important integrations of the acquired businesses along with the property investments that are needed to bring those businesses up to manufacturer standards, increase capacity and provide our Guests with a superior experience," Lavery said.For the year, Cambria booked a 53.2% rise in pre-tax profit to £11.8m, from £7.7m, with revenue up 17.3% to £614.2m, from £523.8m. Dividend was up 20% to 0.9p, from 0.75p.At about 12:03 GMT, shares in AIM-quoted Cambria were down 8.82% to 62p.