7th Jun 2024 12:10
Caffyns PLC - Eastbourne, Sussex-based car dealership chain - Swings to GBP1.5 million pretax loss in the financial year that ended March 31 from a profit of GBP3.1 million the year before. Revenue rises 4.2% to GBP262.1 million from GBP251.4 million, but Caffyns takes financing and service costs related to its defined-benefit pension scheme and make property-value impairments. Underlying operating profit more than halves to GBP2.1 million from GBP4.8 million. "The used car market suffered a significant price correction in the final calendar quarter of 2023 which, along with interest rates and energy costs at elevated levels and inflationary pressures on the cost base, had a detrimental impact on our second half performance," explains Chief Executive Simon Caffyn.
In response, Caffyns cuts its final dividend by two thirds to 5.0 pence from 15.0p. It had cut its interim dividend by a third to 5.0p from 7.5p, so the full-year payout is 10.0p, down from 22.5p in financial 2023.
Looking ahead, Caffyns says it has strong new car forward order book but trading conditions remain challenging, amid cost inflation and high interest rates.
Current stock price: 403.00 pence, down 19% in London midday Friday
12-month change: down 15%
By Tom Waite, Alliance News editor
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