4 August 2015 -interim results
The UK’s leading automotive retailer has announced excellent interim results for the six month period to 30 June with these coming in ahead of expectations. Revenues increased by almost 11% to £2.29bn whilst underlying pre-tax profits rose by 22.9% to £40.3m (2014: £32.8m) with earnings per share on the same basis up 23.8% at 2.13p (2014: 1.72p). The interim dividend was doubled to 0.6p (2014: 0.3p). These strong results were helped by a record performance from the used car business although the new car business continues to produce a strong performance helped by an increase in new car registrations. The aftersales business remains the biggest contributor to profits. The group’s key brands of Evans Halshaw and Stratstone have also benefited from an increase in the number of visits to their websites. Net debt at the end of the period was £53.1m, a reduction of £55.7m since the start of the year. A confident statement regarding prospects for the rest of the year bode well and we retain our recommendation of BUY.