Last week the south-eastern group published its end of year results, which showed sales of £176m, up from £160m, also posting an operating profit of £2.5m.
“Caffyns has doubled its operating profit percentage since this time last year, so it is obviously making this work a lot better,” the analyst told AM. “However, the company has a good franchise mix that others make a significantly better return from, double what Caffyns shows in its 2007 preliminary. So it has progressed from poor to barely adequate.”
Simon Caffyn, chief executive of Caffyns, said that the first stage of the group’s recovery plan, subsequent to the collapse of MG Rover in 2005, is complete but admitted that the last two years had posed significant challenges and that “there is still more to be done”.
“We expect to complete on two property sales during the current year. The strengthened balance sheet will leave us well placed to take advantage of any suitable acquisition opportunities that may arise,” said Caffyn.
In its statement Caffyns showed it has reduced bank borrowings from £7.9m to £6.7m. Over the next financial year it plans to refurbish its Brighton outlet to incorporate the latest Audi specifications, while concentrating on building strong businesses from all its 24 sites.
“We want these dealerships to deliver their full potential,” concluded Caffyn.