(Alliance News) - Car dealer Caffyns PLC on Wednesday outlined a "sense of optimism" for its 2022 financial year, despite sliding revenue due to challenges caused by the Covid-19 pandemic.
Revenue in the financial year that ended March 31 fell 16% to GBP165.1 million from GBP195.8 million the year prior, driven mainly by lower levels of new and used car deliveries due to Covid disruptions. Car dealers were initially forced to close under lockdown rules in the UK, with showrooms in England reopening in June 2020.
Conversely, Caffyns' full-year pretax profit jumped to GBP1.5 million from just GBP103,000 the previous year, helped by cost-cutting measures that included furloughing 80% of the company's employees at one stage and claiming GBP1.3 million under the government's coronavirus job retention scheme.
"Covid-19 had a material impact on the business with turnover falling by 16%," commented Chief Executive Simon Caffyn.
"However, the actions we took to improve efficiencies, coupled with investment in online selling and support from government, allowed us to weather the periods of showroom lockdown and maximise sales when possible.
"I am delighted that everyone within the company adapted quickly and rose to the challenges we faced."
Looking ahead, Caffyns described a general sense of optimism regarding future opportunities although cautioned that the future course of the pandemic brings uncertainty.
Caffyns said it won't propose a final dividend due to the scale of government support it received over the year, together with continuing uncertainty caused by the pandemic. As a result, it will make no payout for the year, down from 7.5 pence in financial 2020.
Shares were up 12% at 449.00p each in London on Wednesday morning.
By Will Paige; willpaige@alliancenews.com
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Caffyns (CFYN)