AGM Statement

RNS Number : 2509L

Caffyns PLC

28 July 2011

 



AGM INTERIM MANAGEMENT STATEMENT

28 July 2011

Brian Birkenhead, Chairman of Caffyns plc, the automotive retailer covering nine car franchises on 19 sites in the south east of England, will make the following Interim Management Statement at the Company's Annual General Meeting at 11.30am today:

"I am pleased to announce that in our first quarter to 30 June 2011 we have continued to trade profitably, although at levels below the previous year.

New car unit sales in the quarter are down 15.7% like for like on last year against a reported fall of 16.4% in our market of private and small business sales.

The used car market also declined and our used car unit sales for the quarter are down 6.2% like for like. Moreover, the market was over-supplied following a high intake of cars from part exchanges in March. As a result, used car valuations declined and margins reduced.

Aftersales activities are in line with budget, with high levels of retention of existing customers.

Our key strategic objectives have been to return to profitability by way of operational improvements and cost reductions, re-balancing of the franchise portfolio and growing organically and by acquisition in order to deliver enhanced shareholder value. The re-balancing has focused on the premium and premium-volume sectors and this has now largely been completed. However, economic conditions generally are not encouraging for retail businesses and we remain cautious about the outlook.

I shall be retiring after the AGM in July 2012. In the Spring of this year, we began a process to identify a successor using an independent executive search company. This process is progressing well and we shall announce the appointment of a new Chairman elect to join the Board in due course."

Enquiries:

Caffyns plc	Simon Caffyn, Chief Executive	Tel:	01323 730201
	Mark Harrison, Finance Director
The HeadLand Consultancy	Howard Lee Tom Gough	Tel:	0207 367 5225 or 5228

 

END

 

 

AGMLIFVDDIITFIL