RNS Number:3373I
Caffyns PLC
23 November 2007
INTERIM RESULTS
for the half year ended 30 September 2007
2007 2006
£'000 £'000
Turnover 94,991 85,484
Operating profit before exceptional items 1,378 1,213
Underlying profit before tax 759 643
Exceptional items 2,826 186
Profit before tax 3,585 829
Earnings per share 95.1p 19.6p
Underlying earnings per share 26.4p 15.0p
Interim dividend per share 8.0p 8.0p
CHAIRMAN'S STATEMENT
Results
In the six months to September 2007 turnover increased from £85.5m to £95.0m.
Profit before tax and exceptional items is also ahead of last year at £759,000
against £643,000. Profit before tax after exceptional items is significantly up
to £3,585,000 from £829,000 last year. This substantial increase was largely the
result of a repayment for overpaid VAT.
Recovery and Development
We are now half way into our three year recovery programme and, considering the
inflationary pressures on consumers of higher interest rates and fuel costs, it
is encouraging to see a substantial increase in turnover. Significant investment
has been made in our franchised dealerships and growth in turnover will in time
be followed by an improvement in performance.
In Brighton we are refurbishing our Audi Centre to enlarge the showroom and
service bay capacity to cater for the success of Audi's expanding model range.
To accommodate this expansion, the bodyshop business has been closed and we are
refurbishing the bodyshop facility in Hailsham to enable us to continue to
provide this service for all our Volkswagen and Audi customers.
VAT
In March 2007 we announced that we had received £3.0m from HM Revenue & Customs
in respect of a claim relating to VAT overpaid on demonstrator vehicle bonuses.
The amount received comprised the claim of £1.4m and interest of £1.6m.
There was uncertainty relating to the retention by the Company of the monies
received pending the outcome of a case due to be heard in the House of Lords
later this year. Following a change of view by HMRC, confirmation was received
in July that the monies can be retained by the Company and that their retention
was no longer dependent upon the outcome of this case.
The monies received (less professional costs incurred) amounting to £2.9m have
been treated as exceptional income in the Company's Income Statement for the
half-year ended 30 September 2007.
Property
We announced in June 2007 that we have exchanged contracts for the sale of our
vacant freehold site in Hove, Sussex, conditional upon planning, for £4.5m. The
planning application has been submitted to the local authority and we now await
the outcome.
In June we also exchanged contracts for the sale of our vacant freehold site in
Worthing, Sussex, conditional upon demolition of the existing building and
environmental remediation of the site which it is hoped will be completed by the
end of our financial year. The consideration of £1.1m is due when these
conditions have been satisfied.
Developments since the period end
On 19 November, we announced the sale of our vacant freehold site in East
Grinstead, Sussex, conditional upon the granting of an acceptable planning
permission, with the consideration of £3.1m being payable two weeks after this
condition is satisfied. The net book value of the property in the company's
accounts is £656,000.
The Future
Whilst it is encouraging to see good growth in our turnover, pressures on
margins caused by external economic and competitive factors continue to restrict
improvements in profits. Recent announcements on the rate of inflation, together
with indications that house prices have levelled off and are now possibly
falling, will continue to influence retail demand in the short term.
The underlying position of the Company is fundamentally strong, allowing us to
build our businesses and to look forward to a further improved performance when
the economy returns to a more stable level.
Your Directors have agreed to an unchanged interim dividend of 8.0p per ordinary
share. This will be paid on 9 January 2008 to shareholders on the register at
5.00pm on 7 December 2007.
Brian A Carte
Chairman
23 November 2007
CONSOLIDATED INCOME STATEMENT
for the half year ended 30 September 2007
Note Half year to Half year to Year to
30 September 30 September 31 March 2007
2007 2006
£'000 £'000 £'000 £'000 £'000 £'000
------ ------ ------ ------ ------ ------
Revenue 94,991 85,484 176,238
------ ------ ------ ------ ------ ------
Operating profit
Before exceptional
items 1,378 1,213 2,515
Exceptional items 2 1,226 186 160
------ ------ ------ ------ ------ ------
Total operating
profit 2,604 1,399 2,675
Interest
receivable 2 1,600 - -
Finance costs (619) (570) (1,232)
------ ------ ------ ------ ------ ------
Profit before tax
From normal
trading
operations 759 643 1,283
Arising from
exceptional items 2 2,826 186 160
------ ------ ------ ------ ------ ------
3,585 829 1,443
------ ------ ------ ------ ------ ------
Tax
On normal trading
operations - (211) (232)
On exceptional
items 2 (848) (54) (48)
------ ------ ------ ------ ------ ------
3 (848) (265) (280)
------ ------ ------ ------ ------ ------
Profit for the
period 6 2,737 564 1,163
------ ------ ------ ------ ------ ------
Earnings per share 4 95.1p 19.6p 40.4p
------ ------ ------ ------ ------ ------
Dividend per
ordinary share 5 8.0p 8.0p 25.0p
------ ------ ------ ------ ------ ------
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
for the half year ended 30 September 2007
Half year to Half year to Year to
30 September 30 September 31 March 2007
2007 2006
£'000 £'000 £'000
Profit for the period 2,737 564 1,163
Actuarial
gains/(losses)
recognised in defined
benefit pension
scheme 2,003 (2,690) 3,134
Deferred tax on
actuarial
gains/(losses) (554) 807 (940)
----------- ----------- -----------
Total recognised
income/(expense) for
the period 4,186 (1,319) 3,357
----------- ----------- -----------
CONSOLIDATED BALANCE SHEET
at 30 September 2007
Note 30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
Non-current assets
Goodwill 481 481 481
Intangible assets 20 43 31
Property, plant and equipment 31,480 31,549 31,610
Retirement benefit scheme 2,610 - 344
Deferred tax asset 593 2,668 1,160
--------- --------- ---------
Total non-current assets 35,184 34,741 33,626
--------- --------- ---------
Current assets
Inventories 25,234 23,965 23,846
Trade and other receivables 7,699 8,999 9,047
Cash and cash equivalents 14 62 35
Non-current assets held for
sale 990 1,645 990
--------- --------- ---------
Total current assets 33,937 34,671 33,918
--------- --------- ---------
Total assets 69,121 69,412 67,544
--------- --------- ---------
Current liabilities
Bank overdrafts and loans 8,358 11,309 6,797
Trade and other payables 20,151 20,814 21,575
Tax liabilities 696 159 230
Obligations under finance
leases 29 29 29
Short-term provisions 125 276 3,203
--------- --------- ---------
Total current liabilities 29,359 32,587 31,834
--------- --------- ---------
Net current assets 4,578 2,084 2,084
--------- --------- ---------
Non-current liabilities
Bank loans 3,000 3,000 3,000
Preference shares 1,237 1,237 1,237
Retirement benefit obligation - 5,725 -
Deferred tax liabilities 3,746 2,139 3,378
Obligations under finance
leases 37 63 50
--------- --------- ---------
Total non-current liabilities 8,020 12,164 7,665
--------- --------- ---------
Total liabilities 37,379 44,751 39,499
--------- --------- ---------
Net assets 31,742 24,661 28,045
--------- --------- ---------
EQUITY
Share capital 1,439 1,439 1,439
Share premium account 272 272 272
Capital redemption reserve 282 282 282
Non-distributable reserve 3,915 3,961 3,915
Retained earnings 6 25,834 18,707 22,137
--------- --------- ---------
Total equity 31,742 24,661 28,045
--------- --------- ---------
CONSOLIDATED CASH FLOW STATEMENT
for the half year ended 30 September 2007
Half year ended Half year ended Year ended
30 September 30 September 31 March 2007
2007 2006
£'000 £'000 £'000
Cash flows from operating
activities
Profit before taxation 3,585 829 1,443
Adjustments for:
Interest receivable (1,600) - -
Finance costs 619 570 1,232
----------- ----------- -----------
Operating profit 2,604 1,399 2,675
Adjustments for:
Depreciation and
amortisation 718 700 1,450
Negative goodwill
received - (186) (186)
Loss/(profit) on
disposal of property,
plant and equipment 11 - (600)
(Decrease)/increase in
provisions (1,478) (65) 2,862
----------- ----------- -----------
Operating cash flows
before movements in
working capital 1,855 1,848 6,201
Movements in working
capital (1,728) (2,982) (925)
----------- ----------- -----------
Cash
generated/(absorbed)
by operations 127 (1,134) 5,276
Income taxes received - 158 151
Net interest paid (619) (570) (1,225)
----------- ----------- -----------
Net cash (used
in)/from operating
activities (492) (1,546) 4,202
----------- ----------- -----------
Investing activities
Proceeds on disposal
of property, plant and
equipment 26 1,476 1,351
Purchases of property,
plant and equipment (614) (2,584) (3,479)
Acquisition of
business - (176) (176)
----------- ----------- -----------
Net cash used in
investing activities (588) (1,284) (2,304)
----------- ----------- -----------
Financing activities
Dividends paid (489) (461) (691)
Repayments of
obligations under
finance leases (13) (14) (27)
----------- ----------- -----------
Net cash used in
financing activities (502) (475) (718)
----------- ----------- -----------
Net
(increase)/decrease in
cash and cash
equivalents (1,582) (3,305) 1,180
Cash and cash
equivalents at
beginning of period (6,762) (7,942) (7,942)
----------- ----------- -----------
Cash and cash
equivalents at end of
period (8,344) (11,247) (6,762)
----------- ----------- -----------
NOTES TO THE INTERIM RESULTS
for the half-year ended 30 September 2007
1. BASIS OF PREPARATION
The interim financial statements for the half year to 30 September 2007 are
unaudited and have been prepared under International Financial Reporting
Standards (IFRS) in accordance with the accounting policies set out in the
Annual Report for 2007. The figures for the year ended 31 March 2007 have been
extracted from the statutory accounts, filed with the Registrar of Companies on
which the auditors gave an unqualified opinion. These interim financial
statements have been reviewed by the Company's auditors. A copy of their review
report is set out at the end of these statements.
These interim statements comply with IAS 34 'Interim Financial Reporting' and
were approved by the Directors on 23 November 2007.
2. EXCEPTIONAL ITEMS
Half year to Half year to Year to
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
VAT refund (net of costs) on
demonstrator vehicle bonuses in the
period 1973 to 1997 1,310 - -
Reverse goodwill received on
acquisition (net of costs) - 186 186
Net (loss)/profit on disposal of
property, plant and equipment (11) - 600
Restructuring costs arising from
branch closures (73) - (626)
---------- ---------- ----------
1,226 186 160
Interest received on VAT refund 1,600 - -
---------- ---------- ----------
2,826 186 160
Less: tax thereon (848) (54) (48)
---------- ---------- ----------
1,978 132 112
---------- ---------- ----------
3. TAXATION
Half year to Half year to Year to
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
Current UK corporation tax at 30%
Charge for the period 1,033 219 85
Advance corporation tax recovered (567) (31) -
Adjustments in respect of prior years - - 180
---------- ---------- ----------
Total corporation tax 466 188 265
Deferred tax at 28% (2006 - 30%)
Origination and reversal of timing
differences 601 77 136
Adjustment due to change in rate of
corporation tax (219) - -
Adjustments in respect of prior years - - (121)
---------- ---------- ----------
848 265 280
---------- ---------- ----------
Taxation for the half year has been provided at the effective rate of taxation
expected to apply to the whole year on ordinary trading. The tax charge on the
profit arising from normal trading operations amounting to £219,000 has been
reduced to nil as a result of the reduction in the rate of tax applicable to the
deferred tax account. Tax on exceptional items is provided at the actual rate
applicable.
4. EARNINGS PER SHARE
Half year to Half year to Year to
30 September 30 September 31 March
Basic 2007 2006 2007
£'000 £'000 £'000
Profit before tax 3,585 829 1,443
Taxation (848) (265) (280)
---------- ---------- ----------
Earnings 2,737 564 1,163
---------- ---------- ----------
Earnings per share 95.1p 19.6p 40.4p
---------- ---------- ----------
Half year to Half year to Year to
30 September 30 September 31 March
Underlying 2007 2006 2007
£'000 £'000 £'000
Profit before tax 3,585 829 1,443
Adjustments: Exceptional items (Note 2) (2,826) (186) (160)
---------- ---------- ----------
Underlying profit before tax 759 643 1,283
Taxation - (211) (232)
---------- ---------- ----------
Underlying earnings 759 432 1,051
---------- ---------- ----------
Earnings per share 26.4p 15.0p 36.5p
---------- ---------- ----------
The number of ordinary shares in issue during each period was 2,879,298.
5. DIVIDENDS
Ordinary shares of 50p each
The interim dividend proposed at the rate of 8.0p per share (2006: 8.0p) is
payable on 9 January 2008 to shareholders on the register at the close of
business on 7 December 2007. The shares will be marked ex-dividend on 5 December
2007.
Preference shares
Preference dividends have been paid in October 2007. The next preference
dividends are payable in April 2008. The cost of the preference dividends has
been included within finance costs.
6. RETAINED EARNINGS
Half year to Half year to Year to
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
At the beginning of period 22,137 20,477 20,477
Prior year adjustment - - (1,062)
---------- ---------- ----------
As restated 22,137 20,477 19,415
Net profit 2,737 564 1,163
Total recognised income and expense
for the period 1,449 (1,883) 2,194
Dividends paid (489) (461) (691)
Transfer from revaluation reserve - 10 56
---------- ---------- ----------
At end of period 25,834 18,707 22,137
---------- ---------- ----------
INDEPENDENT REVIEW REPORT
to Caffyns plc
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
September 2007 which comprises the consolidated income statement, consolidated
statement of recognised income and expense, consolidated balance sheet,
consolidated cash flow statement and the related notes. We have read the other
information contained in the half-yearly financial report and considered whether
it contains any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
This report is made solely to the company in accordance with guidance contained
in APB Statements of Standards for Reporting Accountants "International Standard
on Review Engagements (UK and Ireland) 2410". Our review work has been
undertaken so that we might state to the company those matters we are required
to state to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the company for our review work, for this report, or for the
conclusion we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, ''Interim Financial Reporting'' as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, ''Review of Interim Financial Information
Performed by the Independent Auditor of the Entity'' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 30 September 2007 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
Grant Thornton UK LLP
Chartered Accountants
London
23 November 2007
This information is provided by RNS
The company news service from the London Stock Exchange
Caffyns PLC
23 November 2007
INTERIM RESULTS
for the half year ended 30 September 2007
2007 2006
£'000 £'000
Turnover 94,991 85,484
Operating profit before exceptional items 1,378 1,213
Underlying profit before tax 759 643
Exceptional items 2,826 186
Profit before tax 3,585 829
Earnings per share 95.1p 19.6p
Underlying earnings per share 26.4p 15.0p
Interim dividend per share 8.0p 8.0p
CHAIRMAN'S STATEMENT
Results
In the six months to September 2007 turnover increased from £85.5m to £95.0m.
Profit before tax and exceptional items is also ahead of last year at £759,000
against £643,000. Profit before tax after exceptional items is significantly up
to £3,585,000 from £829,000 last year. This substantial increase was largely the
result of a repayment for overpaid VAT.
Recovery and Development
We are now half way into our three year recovery programme and, considering the
inflationary pressures on consumers of higher interest rates and fuel costs, it
is encouraging to see a substantial increase in turnover. Significant investment
has been made in our franchised dealerships and growth in turnover will in time
be followed by an improvement in performance.
In Brighton we are refurbishing our Audi Centre to enlarge the showroom and
service bay capacity to cater for the success of Audi's expanding model range.
To accommodate this expansion, the bodyshop business has been closed and we are
refurbishing the bodyshop facility in Hailsham to enable us to continue to
provide this service for all our Volkswagen and Audi customers.
VAT
In March 2007 we announced that we had received £3.0m from HM Revenue & Customs
in respect of a claim relating to VAT overpaid on demonstrator vehicle bonuses.
The amount received comprised the claim of £1.4m and interest of £1.6m.
There was uncertainty relating to the retention by the Company of the monies
received pending the outcome of a case due to be heard in the House of Lords
later this year. Following a change of view by HMRC, confirmation was received
in July that the monies can be retained by the Company and that their retention
was no longer dependent upon the outcome of this case.
The monies received (less professional costs incurred) amounting to £2.9m have
been treated as exceptional income in the Company's Income Statement for the
half-year ended 30 September 2007.
Property
We announced in June 2007 that we have exchanged contracts for the sale of our
vacant freehold site in Hove, Sussex, conditional upon planning, for £4.5m. The
planning application has been submitted to the local authority and we now await
the outcome.
In June we also exchanged contracts for the sale of our vacant freehold site in
Worthing, Sussex, conditional upon demolition of the existing building and
environmental remediation of the site which it is hoped will be completed by the
end of our financial year. The consideration of £1.1m is due when these
conditions have been satisfied.
Developments since the period end
On 19 November, we announced the sale of our vacant freehold site in East
Grinstead, Sussex, conditional upon the granting of an acceptable planning
permission, with the consideration of £3.1m being payable two weeks after this
condition is satisfied. The net book value of the property in the company's
accounts is £656,000.
The Future
Whilst it is encouraging to see good growth in our turnover, pressures on
margins caused by external economic and competitive factors continue to restrict
improvements in profits. Recent announcements on the rate of inflation, together
with indications that house prices have levelled off and are now possibly
falling, will continue to influence retail demand in the short term.
The underlying position of the Company is fundamentally strong, allowing us to
build our businesses and to look forward to a further improved performance when
the economy returns to a more stable level.
Your Directors have agreed to an unchanged interim dividend of 8.0p per ordinary
share. This will be paid on 9 January 2008 to shareholders on the register at
5.00pm on 7 December 2007.
Brian A Carte
Chairman
23 November 2007
CONSOLIDATED INCOME STATEMENT
for the half year ended 30 September 2007
Note Half year to Half year to Year to
30 September 30 September 31 March 2007
2007 2006
£'000 £'000 £'000 £'000 £'000 £'000
------ ------ ------ ------ ------ ------
Revenue 94,991 85,484 176,238
------ ------ ------ ------ ------ ------
Operating profit
Before exceptional
items 1,378 1,213 2,515
Exceptional items 2 1,226 186 160
------ ------ ------ ------ ------ ------
Total operating
profit 2,604 1,399 2,675
Interest
receivable 2 1,600 - -
Finance costs (619) (570) (1,232)
------ ------ ------ ------ ------ ------
Profit before tax
From normal
trading
operations 759 643 1,283
Arising from
exceptional items 2 2,826 186 160
------ ------ ------ ------ ------ ------
3,585 829 1,443
------ ------ ------ ------ ------ ------
Tax
On normal trading
operations - (211) (232)
On exceptional
items 2 (848) (54) (48)
------ ------ ------ ------ ------ ------
3 (848) (265) (280)
------ ------ ------ ------ ------ ------
Profit for the
period 6 2,737 564 1,163
------ ------ ------ ------ ------ ------
Earnings per share 4 95.1p 19.6p 40.4p
------ ------ ------ ------ ------ ------
Dividend per
ordinary share 5 8.0p 8.0p 25.0p
------ ------ ------ ------ ------ ------
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
for the half year ended 30 September 2007
Half year to Half year to Year to
30 September 30 September 31 March 2007
2007 2006
£'000 £'000 £'000
Profit for the period 2,737 564 1,163
Actuarial
gains/(losses)
recognised in defined
benefit pension
scheme 2,003 (2,690) 3,134
Deferred tax on
actuarial
gains/(losses) (554) 807 (940)
----------- ----------- -----------
Total recognised
income/(expense) for
the period 4,186 (1,319) 3,357
----------- ----------- -----------
CONSOLIDATED BALANCE SHEET
at 30 September 2007
Note 30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
Non-current assets
Goodwill 481 481 481
Intangible assets 20 43 31
Property, plant and equipment 31,480 31,549 31,610
Retirement benefit scheme 2,610 - 344
Deferred tax asset 593 2,668 1,160
--------- --------- ---------
Total non-current assets 35,184 34,741 33,626
--------- --------- ---------
Current assets
Inventories 25,234 23,965 23,846
Trade and other receivables 7,699 8,999 9,047
Cash and cash equivalents 14 62 35
Non-current assets held for
sale 990 1,645 990
--------- --------- ---------
Total current assets 33,937 34,671 33,918
--------- --------- ---------
Total assets 69,121 69,412 67,544
--------- --------- ---------
Current liabilities
Bank overdrafts and loans 8,358 11,309 6,797
Trade and other payables 20,151 20,814 21,575
Tax liabilities 696 159 230
Obligations under finance
leases 29 29 29
Short-term provisions 125 276 3,203
--------- --------- ---------
Total current liabilities 29,359 32,587 31,834
--------- --------- ---------
Net current assets 4,578 2,084 2,084
--------- --------- ---------
Non-current liabilities
Bank loans 3,000 3,000 3,000
Preference shares 1,237 1,237 1,237
Retirement benefit obligation - 5,725 -
Deferred tax liabilities 3,746 2,139 3,378
Obligations under finance
leases 37 63 50
--------- --------- ---------
Total non-current liabilities 8,020 12,164 7,665
--------- --------- ---------
Total liabilities 37,379 44,751 39,499
--------- --------- ---------
Net assets 31,742 24,661 28,045
--------- --------- ---------
EQUITY
Share capital 1,439 1,439 1,439
Share premium account 272 272 272
Capital redemption reserve 282 282 282
Non-distributable reserve 3,915 3,961 3,915
Retained earnings 6 25,834 18,707 22,137
--------- --------- ---------
Total equity 31,742 24,661 28,045
--------- --------- ---------
CONSOLIDATED CASH FLOW STATEMENT
for the half year ended 30 September 2007
Half year ended Half year ended Year ended
30 September 30 September 31 March 2007
2007 2006
£'000 £'000 £'000
Cash flows from operating
activities
Profit before taxation 3,585 829 1,443
Adjustments for:
Interest receivable (1,600) - -
Finance costs 619 570 1,232
----------- ----------- -----------
Operating profit 2,604 1,399 2,675
Adjustments for:
Depreciation and
amortisation 718 700 1,450
Negative goodwill
received - (186) (186)
Loss/(profit) on
disposal of property,
plant and equipment 11 - (600)
(Decrease)/increase in
provisions (1,478) (65) 2,862
----------- ----------- -----------
Operating cash flows
before movements in
working capital 1,855 1,848 6,201
Movements in working
capital (1,728) (2,982) (925)
----------- ----------- -----------
Cash
generated/(absorbed)
by operations 127 (1,134) 5,276
Income taxes received - 158 151
Net interest paid (619) (570) (1,225)
----------- ----------- -----------
Net cash (used
in)/from operating
activities (492) (1,546) 4,202
----------- ----------- -----------
Investing activities
Proceeds on disposal
of property, plant and
equipment 26 1,476 1,351
Purchases of property,
plant and equipment (614) (2,584) (3,479)
Acquisition of
business - (176) (176)
----------- ----------- -----------
Net cash used in
investing activities (588) (1,284) (2,304)
----------- ----------- -----------
Financing activities
Dividends paid (489) (461) (691)
Repayments of
obligations under
finance leases (13) (14) (27)
----------- ----------- -----------
Net cash used in
financing activities (502) (475) (718)
----------- ----------- -----------
Net
(increase)/decrease in
cash and cash
equivalents (1,582) (3,305) 1,180
Cash and cash
equivalents at
beginning of period (6,762) (7,942) (7,942)
----------- ----------- -----------
Cash and cash
equivalents at end of
period (8,344) (11,247) (6,762)
----------- ----------- -----------
NOTES TO THE INTERIM RESULTS
for the half-year ended 30 September 2007
1. BASIS OF PREPARATION
The interim financial statements for the half year to 30 September 2007 are
unaudited and have been prepared under International Financial Reporting
Standards (IFRS) in accordance with the accounting policies set out in the
Annual Report for 2007. The figures for the year ended 31 March 2007 have been
extracted from the statutory accounts, filed with the Registrar of Companies on
which the auditors gave an unqualified opinion. These interim financial
statements have been reviewed by the Company's auditors. A copy of their review
report is set out at the end of these statements.
These interim statements comply with IAS 34 'Interim Financial Reporting' and
were approved by the Directors on 23 November 2007.
2. EXCEPTIONAL ITEMS
Half year to Half year to Year to
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
VAT refund (net of costs) on
demonstrator vehicle bonuses in the
period 1973 to 1997 1,310 - -
Reverse goodwill received on
acquisition (net of costs) - 186 186
Net (loss)/profit on disposal of
property, plant and equipment (11) - 600
Restructuring costs arising from
branch closures (73) - (626)
---------- ---------- ----------
1,226 186 160
Interest received on VAT refund 1,600 - -
---------- ---------- ----------
2,826 186 160
Less: tax thereon (848) (54) (48)
---------- ---------- ----------
1,978 132 112
---------- ---------- ----------
3. TAXATION
Half year to Half year to Year to
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
Current UK corporation tax at 30%
Charge for the period 1,033 219 85
Advance corporation tax recovered (567) (31) -
Adjustments in respect of prior years - - 180
---------- ---------- ----------
Total corporation tax 466 188 265
Deferred tax at 28% (2006 - 30%)
Origination and reversal of timing
differences 601 77 136
Adjustment due to change in rate of
corporation tax (219) - -
Adjustments in respect of prior years - - (121)
---------- ---------- ----------
848 265 280
---------- ---------- ----------
Taxation for the half year has been provided at the effective rate of taxation
expected to apply to the whole year on ordinary trading. The tax charge on the
profit arising from normal trading operations amounting to £219,000 has been
reduced to nil as a result of the reduction in the rate of tax applicable to the
deferred tax account. Tax on exceptional items is provided at the actual rate
applicable.
4. EARNINGS PER SHARE
Half year to Half year to Year to
30 September 30 September 31 March
Basic 2007 2006 2007
£'000 £'000 £'000
Profit before tax 3,585 829 1,443
Taxation (848) (265) (280)
---------- ---------- ----------
Earnings 2,737 564 1,163
---------- ---------- ----------
Earnings per share 95.1p 19.6p 40.4p
---------- ---------- ----------
Half year to Half year to Year to
30 September 30 September 31 March
Underlying 2007 2006 2007
£'000 £'000 £'000
Profit before tax 3,585 829 1,443
Adjustments: Exceptional items (Note 2) (2,826) (186) (160)
---------- ---------- ----------
Underlying profit before tax 759 643 1,283
Taxation - (211) (232)
---------- ---------- ----------
Underlying earnings 759 432 1,051
---------- ---------- ----------
Earnings per share 26.4p 15.0p 36.5p
---------- ---------- ----------
The number of ordinary shares in issue during each period was 2,879,298.
5. DIVIDENDS
Ordinary shares of 50p each
The interim dividend proposed at the rate of 8.0p per share (2006: 8.0p) is
payable on 9 January 2008 to shareholders on the register at the close of
business on 7 December 2007. The shares will be marked ex-dividend on 5 December
2007.
Preference shares
Preference dividends have been paid in October 2007. The next preference
dividends are payable in April 2008. The cost of the preference dividends has
been included within finance costs.
6. RETAINED EARNINGS
Half year to Half year to Year to
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
At the beginning of period 22,137 20,477 20,477
Prior year adjustment - - (1,062)
---------- ---------- ----------
As restated 22,137 20,477 19,415
Net profit 2,737 564 1,163
Total recognised income and expense
for the period 1,449 (1,883) 2,194
Dividends paid (489) (461) (691)
Transfer from revaluation reserve - 10 56
---------- ---------- ----------
At end of period 25,834 18,707 22,137
---------- ---------- ----------
INDEPENDENT REVIEW REPORT
to Caffyns plc
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
September 2007 which comprises the consolidated income statement, consolidated
statement of recognised income and expense, consolidated balance sheet,
consolidated cash flow statement and the related notes. We have read the other
information contained in the half-yearly financial report and considered whether
it contains any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
This report is made solely to the company in accordance with guidance contained
in APB Statements of Standards for Reporting Accountants "International Standard
on Review Engagements (UK and Ireland) 2410". Our review work has been
undertaken so that we might state to the company those matters we are required
to state to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the company for our review work, for this report, or for the
conclusion we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, ''Interim Financial Reporting'' as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, ''Review of Interim Financial Information
Performed by the Independent Auditor of the Entity'' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 30 September 2007 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
Grant Thornton UK LLP
Chartered Accountants
London
23 November 2007
This information is provided by RNS
The company news service from the London Stock Exchange
