Full year results for the 12 months ended 28th February 2014
Interview with Robert commenting on the results
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Continued growth in all areas of the business
- Revenue up 33.8% to £1.7bn with like‐for‐like revenues up 13.1%
- Like‐for‐like new retail volumes rose by 19.7% compared to UK retail registrations rising 15.0%: with the Group gaining market share
- Like‐for‐like used vehicle volumes rose 7.1% with stronger margins: excellent H2 performance
- Higher margin service revenues rose 6.8% on a like‐for‐like basis � the fourth successive year of growth reflecting higher customer retention rates
- Operating expenses as a percentage of revenues in continuing operations reduced to 10.4% (2013: 11.1%)
- Adjusted(1) operating profit up 96.7% as core(2) business and acquisitions delivered an enhanced performance
- Profit before tax rose 259.1% to £15.8m from £4.4m
- Operating cash inflow up to £47.4m from £13.0m : excellent cash conversion
- Dividend up 14.3% for the full year, increased to 0.8p (2013: 0.7p)
(1) Adjusted for exceptional charges, amortisation of intangible assets and share based payments charge.
(2) Core: Dealerships that have traded for two full consecutive financial years.
Acquisition and turnaround strategy driving profit growth
- Number of outlets increased to 108 (2013: 96) with 14 new outlets acquired or opened in the year
- Successful integration of the Farnell Land Rover business following acquisition in June 2013: Farnell won Land Rover Dealer of the Year 2013
- Group announced on 6 May further acquisition of additional Land Rover and first Jaguar dealership - acquisition will be earnings enhancing immediately
- Acquisitions undertaken in previous periods continue to exhibit performance and margin improvements
- Disposal of non‐core heavy truck operation generated £1.9m of cash
Current Trading and Outlook
- March trading performance significantly ahead of prior year levels
- New car retail market in UK showing continued growth with Group like‐for‐like sales volumes in March up 20.5%: UK private registrations up 20.8%
- April new retail like‐for‐like sales volumes up 3.7%
- March and April used retail like‐for‐like volumes up 14.5%
- Acquisition of Hillendale announced 6 May 2014
- Earnings enhancing in first year
- £8.2m consideration of which £2m in shares
- Burnley Land Rover and Bolton Jaguar
- Strong pipeline of acquisition opportunities
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