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Caffyns turned in a strong performance in the half year to 30 September 2024 with a four-fold increase in pre-tax profits to £213,000 (£44,000) on revenues up 3% to £137.7m.
Underlying profit before tax was £452,000 compared to £259,000 last time, including income of £0.14 million from the sale of a personalised numberplate.
Given the economic backdrop and the changes in the motor retail marketplace, the Board considered the result a good outcome.
Its profit performance from new cars and aftersales was strong but used car profitability remained “severely constrained” due to the scarcity of supply of one- to four-year-old cars.
However, inflationary pressures on costs remained elevated and, in particular, the increase to the National Minimum Wage in April placed significant upward pressure on staffing costs, which alone increased by £0.7 million in the period.
The group announced that it has exchanged contracts for the sale of the Company’s freehold premises in Lewes.
Simon Caffyn, chief executive, said: “I am pleased that, despite increased costs and a difficult trading environment, we have improved our underlying EBITDA and profit before tax.”