Caffyns PLC on Friday said profit was nearly five times higher in the first half of its current financial year, despite a ‘difficult trading environment’.
The Eastbourne, Sussex-based car dealership chain said pretax profit for the six months that ended September 30 multiplied to £213,000 from £44,000 the year before.
Revenue grew 2.5% to £137.7 million from £134.3 million, while cost of sales increased 1.8% to £120.5 million from £118.3 million. Operating expenses rose 7.3% to £15.7 million from £14.6 million.
Underlying earnings before interest, tax, depreciation and amortisation were up 14% to £3.0 million from £2.6 million last year.
Caffyns declared an interim dividend of 5.0 pence per share, unchanged from the year before.
Chief Executive Officer Simon Caffyn said: ‘I am pleased that, despite increased costs and a difficult trading environment, we have improved our underlying Ebitda and pretax profit.’
Looking ahead, CEO Caffyn added: ‘Our forward-order book for new cars remains at healthy levels, although concerns remain over whether manufacturers will place limits on the supply of new internal-combustion engine cars in the final months of 2024 to assist in achieving their government-mandated targets for registrations of zero-emission cars in the 2024 calendar year.
‘The addition of the Skoda franchise in Eastbourne and the CUPRA and SEAT franchises in Worthing will deliver increased sales and enhance profitability. We anticipate an improved used car performance in the second half, alongside significantly lower utility costs. Funding costs are also expected to reduce in line with falls in interest base rates. However, the increase to employers’ National Insurance contributions will add to costs from April 2025.’
Caffyns also in October announced its disposal of its freehold premises at Brooks Road in Lewes to Lidl Great Britain Ltd for £4.7 million. The sale is not expected to produce any meaningful profit for Caffyns and so will not impact its net asset position.
Shares in Caffyns were up 5.7% at 449.00 pence each in London on Friday morning.
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