Caffyns soars after strong half year results

30th May 2014 15:31

Shares in car dealer Caffyns jumped after it drove up underlying pre-tax profit by 78 per cent on the back of a strong rise in revenues. Actual profit before tax climbed 40% year-on-year, from £1.12m to £1.57m, with basic earnings per share climbing from 35.5p to 51.0p. Revenue rose from £164.97m to £193.17m, driven by an 18.6% like-for-like increase in new unit sales, a 17.5% rise in used car unit sales, while aftersales remained below pre-recession levels despite a 2.5% increase. Chief Executive Simon Caffyn said the group "enjoyed a successful year with sales, profits, earnings per share and dividends all increasing substantially". "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," he continued. "We look forward to taking further advantage of the growth opportunities presented by improved economic conditions in the UK." The recommended dividend per ordinary share was increased by 50% to 18p (2013: 12p).The share price climbed 13% to 613p by 14:10. NR