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Caffyns profits up 30% led by used car sales

Caffyns logo 2015

Caffyns has reported an underlying profit before tax increase of 30% to £1.5 million, with increases across all areas of the business for its half year ended September 30.

Profit before tax after non-underlying items is up 41% to £1.7m from £1.2m last year.

Revenue in the half year period increased by 13% to £117.7m compared to £103.9m last year.

The dealer group is celebrating its 150th year and Simon Caffyn, chief executive, said the half year results represent a “significant increase” following four successive years of growth.

Over the half year period, Caffyns’ used car growth saw the biggest jump with an 11.4% rise in like for like sales over the period, new unit sales were up by 9.3%.

Caffyn said the group’s strong sales of both new and used vehicles has meant its own three year car parc has grown, resulting in a 9% growth in service revenue on a like for like basis.

Caffyns opened a new Volkswagen dealership in Worthing in April 2014 and Caffyn said the business is trading ahead of plan.

The group has also completed redevelopment work on the workshop at its Eastbourne VW dealership. Work has started on a new 12 car showroom with extended used car display area for the site.

Caffyns opened its first used car centre in October 2014 in Ashford, and the business reports that it is in profit.

VW emissions scandal

Caffyn also took the opportunity to comment on the VW emissions scandal, with the business expecting a slowdown in sales as a result.

He said: “The emissions problems faced by VW are well documented.

“VW has stated that it expects to have solutions for the affected vehicles and these cars will have the necessary amendments made at authorised Volkswagen dealerships during 2016.

“We anticipate that this will be a carefully managed programme throughout the year and, in the short term, will involve additional work passing through our service departments.

“There has been some slowdown in enquiry rates at our Volkswagen dealerships but we have continued to sell at levels in line with last year. We do, however, anticipate a slowdown in sales until Volkswagen is able to fully clarify the solutions to the affected vehicles.”

Caffyn said that while the economy remains steady and there are strong manufacturer offers, he is expecting the second half of the group’s financial year to be more challenging.

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