Business
Pre-close Trading Update
Pre-close Trading Update.
About this update from Caffyns Plc
[{"type":"text","content":"\n RNS Number : 6604P Caffyns PLC 27 March 2009 \n \nCaffyns plc\n27 March 2009Pre-close Trading Update\nCaffyns plc ('the Company') is pleased to provide an update on trading in advance of issuing preliminary results for the year ending 31 March 2009 which will be announced on Friday 29 May 2009.\n\nIn our Interim Management Statement published last November, we listed a number of key activities on which the Board is focusing, including cost and stock reductions. Efforts continue towards improvements in profitability in the light of continuing adverse market conditions. More will be done in order to return the Company to sustained profitability.\n\nSince the announcement of our half year results in November 2008, the market for new cars has continued to decline. Published industry figures indicate that unit sales in our market segments fell by 24.3% in the three months ended 28 February 2009 compared to the same period a year ago. This compares to our own encouraging performance of a reduction of 11.1% in unit sales over the same period last year. New unit sales to date in March have been more in line with recent market trends.\n\nUsed car volumes during the quarter to 28 February 2009 were up 12.0% compared with the previous year. This trend has continued in March. Used car prices have now stabilised leading to an improvement in margins as compared to earlier this year when they were lower.\n\nOur aftersales performance in servicing, parts and bodyshops since November has remained resilient. \n\nThe trading performance in the three months ended 28 February has, as a consequence, improved compared with the same period last year. \n\nIn February, we closed our Chrysler Jeep franchise in Hailsham transferring the aftersales activities to an existing dealership in Eastbourne. We continue to trade from the Hailsham site with a bodyshop and wholesale parts operation.\n\nCost reduction measures taken so far have reduced the cost base of the Company by £2.5m per annum. Tight management of working capital has resulted in a reduction of net debt in the five months to 28 ...