Caffyns PLC, a UK-based automotive retailer, released its half-year financial report for the period ending September 30, 2024. The report highlights the companys financial performance and provides insights into its operational review, strategy, and future outlook.
**Financial Performance Highlights**
Revenue increased by 3% to £137.7 million, primarily due to a transition by a manufacturer from an agency sales model to a traditional wholesale model.
Underlying profit before tax improved to £0.5 million, including income from the sale of a personalized number plate.
Profit before tax was £0.21 million, with basic earnings per share of 5.7 pence.
Underlying basic earnings per share were 12.2 pence.
An interim dividend of 5.0 pence per ordinary share was declared.
Net bank borrowings increased to £11.5 million.
**Operational Review**
New car deliveries rose by 11%outperforming the national average.
Used car sales volumes increased by 5%, but margins were impacted by higher purchase prices.
Aftersales revenues grew by 8% despite recruitment challenges.
The company experienced transitions by manufacturers towards agency distribution models, with Lotus Cars reverting to a traditional wholesale agreement.
Capital expenditure was £0.5 million, including assets in the course of construction.
The company owns most of its freehold sites, providing a strong asset base and minimal exposure to rent reviews.
**Strategy and Outlook**
Caffyns strategy focuses on representing premium franchises and maximizing opportunities in used cars and aftersales service.
The company aims to deliver higher returns from larger sites and improve performance in used car and aftersales operations.
The forward-order book for new cars remains healthy, but concerns exist over potential limits on the supply of internal-combustion engine cars.
The addition of new franchises is expected to enhance sales and profitability.
Used car performance is anticipated to improve in the second half, along with lower utility and funding costs.
The companys balance sheet is appropriately funded, and its freehold property portfolio provides stability.
Caffyns remains confident in its long-term prospects and is open to exploring future business opportunities.