Car dealer Caffyns profits jump as car sales soar

 
Guy Bentley
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Caffyns profits rose 40 per cent in the year ended 31 March (Source: Getty)

Car dealer Caffyns has reported a rise of 40 per cent in profit before tax to £1.5m for the year ended 31 March. Revenue was also on the up climbing to £193m, with dividends per share rising from 12p to 18p.

Like-for-like unit car sales leapt 18.6 per cent, while like-for-like used unit car sales enjoyed a 17.5 per cent rise. In the same period total UK new car registrations increase by 12.5 per cent. However, annual new car registrations remain below pre-recession levels.

The company relocated its Volkswagen business in Worthing to a new 15 car showroom and 12 bay workshop. The new development us intended for customers to have greater viewing opportunities and increased aftersales facilities. Caffyns said it had strengthened its Volkswagen operations by acquiring a freehold property next to its dealership in Esatbourne.

"By adopting a strategy of trading from larger sites, and by focussing on our excellent franchises, we have been able to record an improved operational performance in both new and used cars. We look forward to taking further advantage of the growth opportunities presented by improved economic conditions in the UK", said chief executive Simon Caffyn.

The company is also optimistic about the economic recovery in some European markets and is seeking to improve the use of technology to facilitate the customer's transition from internet based research to visiting a showroom.