Cambria Automobiles saw a 4.8% fall in operating profits for the year ending August 31, as competitor Marshall stated that FY 2017 results will be ahead of expectations.
Cambria saw falls of 12% in new vehicle sales and 6% in used vehicle ones, partially offset by a 26% and 6% improvement in profit per unit for the respective segments.
Despite and a 5% rise in revenues to £644m, profits were dragged down to £11.8m.
The group refinanced their existing debt facilities for a £40m addition in November.
Mark Lavery, chief executive officer, said: “As has been well documented, the trading environment in the period post-March has been more challenging, particularly in the new car arena which has been impacted by a number of factors.
“The weakening in the Sterling exchange rate has led to inflation in the landed cost of imported vehicles into the UK which, combined with a level of consumer uncertainty in the market, has led to the anticipated reduction of new car sales.”
“The board remains confident that Cambria’s resilient business model, focus on delivering a superior Guest experience and financing arrangements leave it well positioned to take advantage of any opportunities that the current economic uncertainty could provide.”
Marshall Motor, meanwhile, said that its FY 2017 results, to be released in March, are set to exceed expectations.
The £100m debt the group held at the end of June 2017 was “effectively eliminated”, primarily through the sale of Marshall Leasing (MLL) to Bank of Ireland UK.
Together with a committed £120m revolving credit facility, the restructuring left the group “in a very strong financial position and well-positioned to exploit future growth opportunities”.
Daksh Gupta, chief executive officer, said: “I am delighted to report that the financial performance of the group during 2017 is expected to be ahead of our previously upgraded expectations despite the market backdrop.
“Following the disposal of MLL we are now focused exclusively on our motor retail business and our balance sheet has been further enhanced. We therefore approach 2018 from a position of increased financial strength and with the ongoing support of our brand partners.”