Economy puts brake on revenues at Caffyns

DEALERSHIP group Caffyns has reported a slump in turnover due to challenging economic conditions and the closure of some dealerships.

 

Revenues for the 12 months toMarch 31, 2012fell to £170.2 million (2011: £201.5m), although pre-tax profits increased to £1.46m from £270,000.

 

During the year, Caffyns closed two underperforming sites and three further dealerships were consolidated into adjoining operations to reduce costs and increase profitability. Central support service costs were further reduced by more than £600,000.

 

In a statement the company said: ‘The major restructuring exercise has produced a stronger core business with higher quality, more concentrated businesses and a strong balance sheet.’

 

Chief executive Simon Caffyn said: ‘We have completed a large part of our restructuring and are now in a much stronger position.

 

‘However, we have not yet seen signs of a sustainable improvement in consumer confidence. With difficult market conditions likely to be with us for some time to come, and continuing uncertainty over future events inEurope, we continue to take steps to improve operating performance. We are strategically well placed with resilient premium franchises to take advantage of any improvement in economic conditions.’

 


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