26th Nov 2021 10:54
(Alliance News) - Caffyns PLC on Friday reinstated dividend payments in a promising first half performance that saw healthy revenue and profit growth although the car dealer cautioned that supply problems remain around new cars.
For the half year ended September 30, revenue climbed 30% to GBP110.8 million from GBP85.4 million a year before.
Pretax profit widened to GBP2.3 million from GBP1.4 million in the prior period. Caffyns said customer demand for used cars remains strong, with few signs of slowing.
Chief Executive Simon Caffyn commented: "Our results to September benefited from an unprecedented used car performance. We have also implemented greater operational efficiencies throughout the group and I am proud of the way our operational and support teams have risen to the challenges to deliver this strong performance."
Following the trading rebound in the first half, Caffyns announced it was resuming dividend payments with a 7.5 pence per share payout. The company decided against paying dividends last year due to Covid-19.
Caffyns shares 3.0% lower in London on Friday morning at 485.00p each.
Looking ahead, the car dealer noted a forward-order bank for new cars at a "historically high level", encouraging for 2022 when new car availability may improve.
However, Caffyns warned that in the short-term new cars are expected to remain in short supply and the high level of national covid-19 infections continues to be a concern for the company. Given these uncertainties, the company highlighted it remains cautious for the second half of the financial year.
By Will Paige; [email protected]
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