Caffyns H1 financial results reveal revenues and profit growth

Caffyns has revealed turnover up by 29.8% and a 62.3% rise in profit before tax in published results for the first half of its financial year.

The East Sussex-based AM100 PLC detailed a turnover of £110.8 million (H1 2020: £85.4m) and profit before tax of £2.3m (H1 2020: £1.4m) for the six-month period to September 31, 2021, in accounts issued via the London Stock Exchange this morning (November 26).

Caffyns’ new car deliveries rose by 12% during the period which saw its franchised operations boosted by the addition of the MG Motor UK and Lotus in Ashford, Kent, and a £700,000 investment in its Volvo dealership in Eastbourne, East Sussex.

In April it also announced the its appointment to the London Electric Vehicle Company (LEVC) dealer network with the opening of a new franchised retail location in Eastbourne.

Used car sales rose 36% in the period, meanwhile, after making improvements to its on-line presence and customer journeys which, it said, helped to make for “a much more enjoyable customer experience”.

Aftersales revenues rose by 21%, meanwhile.

Commenting on the performance, Caffyns chief executive, Simon Caffyn, said: “Our results to September benefited from an unprecedented used car performance.

“We have also implemented greater operational efficiencies throughout the group and I am proud of the way our operational and support teams have risen to the challenges to deliver this strong performance.”

Caffyns benefitted from the government’s business rates holiday for retail premises during its reported period, with savings of £500,000 compared to £600,000 in 2020.

It also claimed around £100,000 in furlough funding from the Coronavirus Job Retention Scheme (CJRS) – compared to £1.7m in H1 2020.

Back in June this year, AM reported that Caffyns had succesfully "clawed soundly back into the black" amid the coronavirus pandemic thanks to efficiencies, state support and investment in online sales. 

The Caffyns board announced that, in light of its latest set of financial results, it would now resume the payment of dividends to shareholders in January 2022.

It said: “Having considered the interests of all stakeholders and, in light of the strong financial performance and associated cash generation in the period and the longer-term prospects for the business, the board has judged that it is appropriate to re-start payment of dividends and has declared an interim dividend of 7.5 pence per ordinary share (2020: Nil pence per ordinary share).”