Monday, November 28, 2011
Caffyns half year profits take a hit
Caffyns, the East-Sussex based group, continued to trade profitably in the half year to 30 September despite tough trading conditions.
Group turnover fell to £86.7m from £103.8m with pre tax profits of £241,000 compared to £917,000 last time. Losses of £129,000 arose from the closure of a site in Sevenoaks. Caffyns is rated number 41 in the Motor Trader top 200.
The reduced turnover was in part due to the sale or closure of seven businesses which accounted for £12.3m of the reduction.
Over the half year new unit sales fell by 4.6 per cent on a like for like basis. Used car sales were down 8.9 per cent on a like for like basis with reduced margins due to increased competition.
Aftersales revenue fell by 3.3 per cent on a like for like basis although the company held market share. Caffyns said its focus on customer satisfaction had helped it fend off tough competition from independent garages.
Chief executive Simon Caffyn said: "This is a transformational time for Caffyns as we continue our drive to represent premium and premium-volume franchises.
“As such, we are making necessary changes to our business which, underpinned by a strong balance sheet, means we are well placed to take advantage of improvements in market conditions in the longer term and deliver value to all shareholders."
DATED: 28.11.11
FEED: MT
