30th May 2014 06:43
LONDON (Alliance News) - Caffyns PLC Friday reported higher profit and revenue for its last financial year, as it took advantage of the continued increase in new and used car buying in the UK and boosted its operational efficiency by trading from larger sites.
The chain of car dealerships reported a pretax profit of GBP1.6 million in the year to end-March, up from GBP1.1 million a year earlier, as revenue rose to GBP193.2 million, from GBP165.0 million.
It sold nearly 19% more new cars on a like-for-like basis, and nearly 18% more used cars. Aftersales revenue, which includes revenue from things like car servicing, rose 2.5%, although the company said it expects a pickup in the future after it boosted its aftersales marketing, and as its higher car sales mean more cars coming back for aftercare.
The UK car market has been recovering for the past three years after declining sharply in the wake of the financial crisis and resulting economic downturn. New car registrations hit 2.3 million cars in 2013, up from 1.9 million in 2011, according to trade body The Society of Motor Manufacturers and Traders.
"By adopting a strategy of trading from larger sites, and by focussing on our excellent franchises, we have been able to record an improved operational performance in both new and used cars. We look forward to taking further advantage of the growth opportunities presented by improved economic conditions in the UK," Caffyns Chief Executive Simon Caffyn said in a statement.
Caffyns said it will pay a final dividend of 12.0 pence for last year, up from 7.0 pence in the previous year, meaning a total dividend of 18.0 pence, up from 12.0 pence.
It generated net cash from its operating activities of GBP5.37 million during the year, compared with a GBP0.04 million outflow a year earlier.
The company sells brands owned by Volkswagen and Jaguar Land Rover, as well as Vauxhall and Volvo cars.
It relocated its VW business in Worthing to a new 15 car showroom and 12 bay workshop at the start of April, bought a site in December adjacent to its Eastbourne VW dealership, allowing it to extend in the future, and had built a new showroom and aftersales facilities for its Skoda dealership in Ashford. It has also expanded and upgraded other dealerships.
By Steve McGrath; [email protected]; @SteveMcGrath1
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