RNS Number:9056L
Caffyns PLC
16 January 2008
Caffyns plc
16 January 2008
Trading Update/Interim Management Statement
Since the announcement of the half year results in November 2007, the market for
new cars has continued to grow slightly but margins have come under increasing
pressure from economic weakness and competitive price cutting. The economic
factors influencing our sales include a slow down in the housing market and an
adverse environment for consumer credit. Retail demand, which is the key driver
of our business, has therefore been weakened and December was a particularly
disappointing month. This downward trend has continued in January.
We anticipate that margins will remain under pressure for some time to come and
we now expect that our trading performance will be considerably weaker in the
second half of the year than in the first half. As has been the case
historically, the overall outcome for the year will be determined by trading in
the final two months of the financial year and, particularly, in March. In
light of the current trading conditions the Board is examining a number of
initiatives in order to improve performance.
We have a number of property transactions at various stages of completion but
these are not expected to conclude in the current financial year. The
exceptional profits of £2.8 million announced earlier in the year are
unaffected.
Ends
Enquiries:
Simon Caffyn
Chief Executive
Mark Harrison
Finance Director
01323 730201
For further information visit caffynsplc.co.uk
Caffyns PLC
16 January 2008
Caffyns plc
16 January 2008
Trading Update/Interim Management Statement
Since the announcement of the half year results in November 2007, the market for
new cars has continued to grow slightly but margins have come under increasing
pressure from economic weakness and competitive price cutting. The economic
factors influencing our sales include a slow down in the housing market and an
adverse environment for consumer credit. Retail demand, which is the key driver
of our business, has therefore been weakened and December was a particularly
disappointing month. This downward trend has continued in January.
We anticipate that margins will remain under pressure for some time to come and
we now expect that our trading performance will be considerably weaker in the
second half of the year than in the first half. As has been the case
historically, the overall outcome for the year will be determined by trading in
the final two months of the financial year and, particularly, in March. In
light of the current trading conditions the Board is examining a number of
initiatives in order to improve performance.
We have a number of property transactions at various stages of completion but
these are not expected to conclude in the current financial year. The
exceptional profits of £2.8 million announced earlier in the year are
unaffected.
Ends
Enquiries:
Simon Caffyn
Chief Executive
Mark Harrison
Finance Director
01323 730201
For further information visit caffynsplc.co.uk