Business
Response to Shareholder Annou
Response to Shareholder Annou.
About this update from Caffyns Plc
[{"type":"text","content":"\n RNS Number : 7016W Caffyns PLC 31 July 2009 \n \n31 July 2009\n\nCaffyns plc ('Caffyns' or the 'Company')\n\nThe Chairman, Brian Birkenhead, is writing to all shareholders in response to the letter from EPS Enhancing Earnings Limited, formerly New Fortress Holdings Limited ('New Fortress'), released on 29 July 2009 by London Trust Limited. The text of the letter from the Chairman is set out below.\n\nDear Shareholder\n\nYou have recently been sent a letter from New Fortress regarding the Company's performance, strategy and capital structure. The Board strongly rejects the comments contained in the letter and continues to seek to deliver value for all shareholders during these difficult times. Yesterday the Board issued the following announcement:\n\n'AGM INTERIM MANAGEMENT STATEMENT\n\nWe are pleased to announce that we have made a profit, ahead of our plan, in the first quarter of the current financial year which continues the improvement that resulted in a profit in the last quarter of the previous financial year. The strategy we adopted last year to deal with an unprecedented decline in our market has turned last year's losses into profits in two successive quarters. \n\nOur new car sales in the quarter to June were down 3% against a reported fall of 13.7% in the private and business market. Improved effectiveness of our marketing to both new and existing customers, allied to enhanced design of our internet site and also good use of the Government's scrappage scheme, have resulted in this improvement in our market share. In July, our new car sales are over 40% up on last year. We have new car orders in hand for delivery in the new registration month of September which are double the level at this time last year. \n\nWe continue to make good progress selling used cars and unit sales are up 17% on a like for like basis in the quarter to June and gross profit margins are significantly improved. Used car prices have remained strong, partly due to a shortage of supply, and we have also significantly strengthened the effectiveness of our supply chain management.\n\nManagement of working capital has resulted in lower levels of new and used car stocks and we have achieved a stock turn rate for used cars which is signif...