27th Nov 2015 07:52
LONDON (Alliance News) - Car dealership group Caffyns PLC on Friday posted a big rise in interim pretax profit as revenue increased thanks to robust rises in like-for-like sales across its new and used car sales, though it sounded a note of caution on the outlook for its second half.
Caffyns said its pretax profit for the half to the end of September rose 41% to GBP1.7 million, up from GBP1.2 million a year earlier, as revenue increased to GBP117.7 million from GBP103.9 million.
The company said its like-for-like new car unit sales rose 9.3% in the half, while used car like-for-like sales improved 11%. Service revenue also increased, up 9.0% amid good customer retention.
Caffyns will pay an interim dividend of 7.25 pence per share, up from 6.75p.
"I am delighted that we continue to report material increases in our underlying profitability, making four successive years of growth," said Chief Executive Simon Caffyn.
Despite the buoyant first half, however, Caffyns said while it remains cautiously optimistic on the outlook, recent figures from the Society of Motor Manufacturers and Traders, which showed new car sales dipping 1.0% in October, and the well-documented emissions-testing scandal involving German giant Volkswagen AG suggest second-half trading may be more challenging.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Caffyns