F&I Management & Training

Caffyns has plunged into the red after reporting a pre-tax loss of £2.1m in the first half of the year.

The car dealer group, which has sites across the south of England, suffered the losses in the six months to 30 September.

The pre-tax loss compared with a profit of £3.6m over the same period in the previous year.

Turnover also fell from £95m to £84.6m.

To cope with the downturn in the UK car market Caffyns said it had implemented several measures to combat falling revenues.

They include reducing costs through the closure of under-performing branches and reducing staff numbers as well as improving sales performance through concentrating on lower-priced and fuel-efficient vehicles and used car sales.

Chief executive Simon Caffyn warned that trading would remain tough for the foreseeable future.

"The outlook is for trading to continue to be challenging for the remainder of 2008, well into 2009 and possibly beyond," said Caffyn.

"The actions we have taken, combined with our relatively low gearing, place us in a stronger position to deal with recessionary conditions."

DATED: 27.11.08

FEED: MT