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Caffyns recovery plan brings market share gains

Dealer group Caffyns is continuing its recovery plan which has seen market share gains in its region.

The publicly-listed motor retailer reports that in the four months to the end of January, its new car volume declined only 17.9% against a total market drop in the sector of 28.4%.

Excluding 2009’s scrappage sales, Caffyns new car sales were up 29%.

Used car unit sales increased by 11.3% in the four-month period and aftersales turnover was up 2.3% on a like-for-like basis.

The group, whose board contains several family members including chief executive Simon Caffyn, continues to consolidate its operations in order to improve efficiency.

It has sold its Citroën dealership in Uckfield to Jarretts Motors, a group which already represents the French brand in nearby Eastbourne, Ashford and Folkestone and trades as Wilmoths.

In recent weeks Caffyns has closed a small Ford business in Haslemere, and now plans to close two bodyshops in Hailsham and Tunbridge Wells and a Nissan/Chevrolet dealership in Eastbourne. It described these sites as “under-performing”.

“These disposals are expected to have a positive cash impact and should enhance trading profit next year. Cash from sales of properties will be invested in our premium and premium-volume dealerships to continue our strategy of modernisation towards larger and more profitable sites,” said its statement.

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