AM Online

Rumours rise with Caffyns’ shares

Caffyns’ shares have been the subject of intense activity recently, sparking speculation that another company is trying to build a shareholding before making an outright bid for the Eastbourne-based AM100 dealer group.

At the beginning of December the shares were valued at 685p. By the New Year they had risen to a 52-week high of 840p, before dipping very slightly last week.

One investor, who doesn’t want to be named, says: “If the price rises much further it would indicate someone is not just speculating for profit, but building a strong share- holding, making the group ripe for takeover.”

Established in 1865, Caffyns plc is a family controlled company with around 800 staff, more than 32 retail and trade outlets, and franchises for 13 makes of vehicle, including Peugeot, Volkswagen, Vauxhall, Audi and MG Rover.

Its interim results for the first six months of this financial year show a 15% rise in operating profits from £1.7m to £1.98m and a £4m increase in turnover to £80m. Simon Caffyn, managing director, says: “There is no speculation that we are aware of. I believe this increase is just on the back of our very favourable results.”

He says most shares are held by the family, so with few in public circulation any trading would have a disproportionate affect on the share price.

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Comment as guest


Login  /  Register

Comments

No comments have been made yet.