Business
AGM Interim Management Statem
AGM Interim Management Statem.
About this update from Caffyns Plc
[{"type":"text","content":"\n RNS Number : 6592Z Caffyns PLC 23 July 2008 \n \n23 July 2008\n\nCaffyns plc ('Caffyns' and 'the Company')\n\nAGM Interim Management Statement\n\nAt the Annual General Meeting of Caffyns this morning, Brian Carte, the Chairman, will make the following statement:\n\n'As I highlighted in my statement earlier this year in the annual report, 2008 is proving to be a difficult year. The market for new cars continues to be under severe pressure, with new car registrations down by 2.5% since March. June, in particular, was a challenging month for national registrations within our main markets, with the private and small business user sectors declining by 14% when compared to the same month last year. \n\nThis has been a direct result of the turmoil in the credit markets and the resultant decline in consumer confidence and spending, which is affecting retail markets generally. This has led to further increased competition for new car sales depressing new car prices, which in turn has had an impact on the price of late model used cars. This decline in consumer activity, and consequent margin pressure, has resulted in a difficult trading environment for the first quarter of our financial year, conditions which are shared by our competitors in the sector.\n\nThe outlook remains uncertain although we expect trading conditions to remain challenging. New car sales are expected to be generated by consumers deciding to downsize vehicles with lower CO2 emissions and lower Vehicle Excise Duty ('VED') rates. We also anticipate that some purchase decisions that have been postponed will be made once clarity over the intended level of VED taxes is forthcoming. We continue to take steps to reduce our operating costs in the business in order to improve performance.'\n\nThe Chairman has also written to all shareholders today in response to the letter sent to shareholders by New Fortress Holdings Limited ('New Fortress') on 16 July. The text of the letter from the Chairman is set out below:\n\n'Dear Shareholder\n\nYou have been sent a letter from New Fortress dated 16 July 2008 regarding the Company's performance, capital structure and strategy. The Board does not accept New Fortress's comments in the letter, strongly refutes the implication that there has been any failing in its fiduciary duty, and would like to make clear the following ach...