Interim Management Statement

RNS Number : 0032Y

Caffyns PLC

15 February 2013

 



INTERIM MANAGEMENT STATEMENT

15 February 2013

Caffyns plc ("Caffyns" or the "Company")

This Interim Management Statement by Caffyns plc covers the period from 1 October 2012 to 14 February 2013.

Performance

During the four months ended 31 January 2013 ("the period"), the Company's unit sales of new cars were up by 20.6% on the equivalent period in the previous year on a like-for-like basis. The overall UK new car market increased by 9.8% in the period whilst our main market in the private and small business sector increased by 17.6%.

Caffyns' used car unit sales were up by 10.6% on a like-for-like basis in the period. Aftersales turnover was level on a like-for-like basis.

Property

On 14 February 2013, the Company exchanged contracts to acquire a freehold property immediately adjacent to our Land Rover dealership in Lewes from Lewes Central (IOM) Limited for a consideration of £2.0m payable in cash on 21 February 2013. The purchase of this site will enable us to operate our aftersales activities at our enlarged dealership premises and allow us to vacate leasehold premises nearby in April 2013. The Company will occupy approximately 60% of the site and is reviewing opportunities to let or sell the balance of the buildings acquired.

The new and enlarged showroom and aftersales facilities for our Volkswagen dealership in Brighton is now complete, on schedule and budget, with the business returning to normal trading after onsite disruption. Work on the construction of our new Volkswagen dealership in Worthing is scheduled to begin in April 2013, with an expected completion date early in 2014. The anticipated cost of the development at £4.75m will be partially offset, in due course, by the sale of the existing site occupied by this franchise in Goring.

Trading

Despite having made further progress during the period, trading conditions remain challenging. The full year outturn will, as always, be influenced by our performance in the crucial month of March.

Our balance sheet remains strong and gives us the flexibility to take advantage of commercial opportunities.

Enquiries:
Caffyns plc	Simon Caffyn, Chief Executive	Tel: [phone]
	Mark Harrison, Finance Director
The HeadLand Consultancy	Howard Lee	Tel: [phone]
	Tom Gough
For further information visit www.caffynsplc.co.uk

 

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