Number plate sale boosts numbers at Caffyns

The car dealership group Caffyns has reported a sharp rise in profits, thanks in part to an unusual £140,000 windfall from the sale of a single personalised number plate.
The proceeds from the auction helped to lift pre-tax profits to £213,000 for the six months to September 30, compared with £44,000 a year earlier.
The company’s underlying pre-tax profit, which excludes items unrelated to the primary motor trade business, rose from £259,000 to £452,000. Revenue increased 3 per cent to £137.7 million, which was attributed to higher new car deliveries and strong after-sales performance.
The personalised plate sale reflects a broader strategy by the company to capitalise on non-core assets providing a boost amid challenging trading conditions.
Despite rising staffing and utility costs, which added £700,000 to expenses, Caffyns benefited from easing energy prices and an improved product mix, including the return of some manufacturers to traditional wholesale models.
New car deliveries rose 11 per cent year-on-year, with the company outperforming the UK market. National registrations, in contrast, rose by just 1 per cent.
Used car margins remained under pressure due to tight supply and higher purchase prices.
After-sales revenue grew by 8 per cent, although challenges in recruiting technicians constrained capacity.
Caffyns declared an interim dividend of 5p a share, unchanged from last year, which it said reflected confidence in its performance and outlook.
Simon Caffyn, chief executive, said: “I am pleased that, despite increased costs and a difficult trading environment, we have improved our underlying ebitda (earnings before interest, tax, depreciation and amortisation) and profit before tax. The sale of a personalised number plate was a one-off event, but it underscores the company’s ability to maximise opportunities.”
The addition of new brands, including Skoda and the Cupra, is expected to boost sales, while falling utility costs and easing interest rates should provide further relief, the company said.
The East Sussex-based company, which operates primarily from freehold sites, noted that its robust property portfolio provided stability in a challenging automotive market.