Full year results for the 12 months ended 28th February 2015
Interview with Robert commenting on the results
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Continued growth in all areas of the business delivering record revenues and profits
- Adjusted(1) profit before tax up 25.7% to £22.0m
- Profit before tax rose 32.9% to £21.0m from £15.8m
- Revenue up 23.2% to £2.1bn with like-for-like revenues up 11.4%: first time revenues have exceeded £2bn
- Like-for-like used vehicle volumes rose 9.2% with stronger gross profit per unit: Third consecutive year of like-for-like volume growth
- Higher margin service revenues rose 3.5% on a like-for-like basis: fifth successive year of growth
- Higher customer retention rates in service with over 71,000 (2014: 55,397) customers on Group service plans
- Like-for-like new retail sales volumes rose by 6.4% as UK new car market continued to expand
- Adjusted(1) operating profit up 26.8% as core(2) business and acquisitions delivered an enhanced performance
- Adjusted(1) earnings per share growth of 9.8%
- Dividend up 31.3% for the full year, increased to 1.05p (2014: 0.8p): showing Board's confidence in the sustainability of the Group's profit growth and cash generation
(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 116 (2014: 106) with 14 new outlets acquired or opened since 1 March 2014
- Recently announced earnings enhancing acquisitions of additional Land Rover and Jaguar dealerships - reflect Group's ambition for a balanced portfolio of volume and premium franchises
- Acquisitions undertaken in previous periods provide the Group with further opportunity to deliver improved margins
Strong balance sheet and funds available for expansion
- Net cash of £15.7m (2014: £31.4m)
- Significant unutilised bank facilities refinanced in March 2015 provide substantial resources of £40m for further expansion opportunities
- Balance sheet underpinned by freehold and long leasehold property portfolio of £126.6m (2014: £105.6m)
- Net assets of £179.6m (2014: £163.4m):net assets per share of 52.7p (2014: 48.5p)
Current Trading and Outlook
- March and April trading performance ahead of current year financial plan and significantly ahead of prior year levels
- March was the highest UK registrations month for new cars this century
- New car retail market in UK showing continued growth: Group like-for-like new retail sales volumes in March and April up 4.3% against UK private registrations up 2.7%, reflecting significant outperformance by the Group
- March and April used retail like-for-like volumes up 6.2% with lower margins being more than offset by volume growth
- Overall aftersales performance strong with higher revenues and margins in each of service, accident repair centres and parts
- Group service revenues have continued to grow 7.2% on a like-for-like basis in March and April
- Seeing consistent profit growth from improving recently acquired dealerships
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