Motor Trader The award-winning and longest running UK magazine for car retailing professionals. Your first stop for News, Jobs and Reports for the motor industry.
Falling used car values in the final quarter of 2023, along with high interest rates and energy costs saw Caffyns move -£1.5m into the red for 2023 on turnover up 4% to £262.1m.
New car unit deliveries up by 5%, used car unit sales were up by 2% and aftersales revenues increased by 5% to £28.5.
Caffyns said its used car performance in the year was held back by falling volumes at its Motorstore non-franchised businesses in Ashford and Lewes where trading was ‘subdued.’
It also commented that it was ‘very challenging’ sourcing good quality used stock because of the smaller used parc due to successive years of falling new car sales.
Net bank borrowings at 31 March 2024 were £11.3 million (2023: £8.1 million), which equated to gearing of 39% (2023: 26%).
On individual brands MG had performed strongly during the year, Audi was satisfactory although profits were much reduced from the prior year, VW, Skoda and Seat were held back by product shortages while Vauxhall underperformed although it commented that changes made by Stellantis were set to deliver Improved performance in the future.
Simon Caffyn, chief executive, said: “Turnover in the year increased by 4% to £262 million as trading for new cars and aftersales remained robust.
“However, the used car market suffered a significant price correction in the final calendar quarter of 2023 which, along with interest rates and energy costs at elevated levels and inflationary pressures on the cost base, had a detrimental impact on our second half performance.”