Last checked at 27 Mar 2009 17:38
Caffyns plc 27 March 2009Pre-close Trading Update Caffyns plc ("the Company") is pleased to provide an update on trading in advance of issuing preliminary results for the year ending 31 March 2009 which will be announced on Friday 29 May 2009.
In our Interim Management Statement published last November, we listed a number of key activities on which the Board is focusing, including cost and stock reductions. Efforts continue towards improvements in profitability in the light of continuing adverse market conditions. More will be done in order to return the Company to sustained profitability.
Since the announcement of our half year results in November 2008, the market for new cars has continued to decline. Published industry figures indicate that unit sales in our market segments fell by 24.3% in the three months ended 28 February 2009 compared to the same period a year ago. This compares to our own encouraging performance of a reduction of 11.1% in unit sales over the same period last year. New unit sales to date in March have been more in line with recent market trends.
Used car volumes during the quarter to 28 February 2009 were up 12.0% compared with the previous year. This trend has continued in March. Used car prices have now stabilised leading to an improvement in margins as compared to earlier this year when they were lower.
Our aftersales performance in servicing, parts and bodyshops since November has remained resilient.
The trading performance in the three months ended 28 February has, as a consequence, improved compared with the same period last year.
In February, we closed our Chrysler Jeep franchise in Hailsham transferring the aftersales activities to an existing dealership in Eastbourne. We continue to trade from the Hailsham site with a bodyshop and wholesale parts operation.
Cost reduction measures taken so far have reduced the cost base of the Company by £2.5m per annum. Tight management of working capital has resulted in a reduction of net debt in the five months to 28 February 2009 of £0.8m.
The major refurbishment of our Brighton Audi franchise was completed in February and this dealership is now trading normally once again.
The Company has today exchanged contracts with Southern Housing Group Limited for the sale of its vacant freehold site at Hove for £1.5 million, which is equivalent to the book value of the site after taking into account demolition, remediation and sale costs. The consideration is payable in cash by 31 March 2009. The proceeds will be applied in reducing the Company's borrowings. Ends Enquiries: Caffyns plc 01323 730201
Simon Caffyn, Chief Executive
Mark Harrison, Finance Director The HeadLand Consultancy 020 7367 5222
Howard Lee
Tom GoughFor further information visit caffynsplc.co.uk