Vendor group Caffyns posts £1.5 million pre-tax loss regardless of increased 2023 automobile gross sales

The AM100 automobile supplier group Caffyns has posted a £4.5 million swing into losses regardless of having the ability to enhance its gross sales of latest and used vehicles in 2023.

Its report back to the London Inventory Trade revealed pre-tax losses of £1.5 million in comparison with the £3.1m revenue it earned in 2022, when earnings have been already in decline, whereas revenues had risen 4% to £262 million off the again of a 5% rise in new automobile gross sales quantity and a 2% uplift in used automobile volumes.

The underlying 2023 losses at Caffyns, which operates dealerships for manufacturers together with Audi, Lotus, MG, Seat/Cupra, Skoda, Volkswagen and Volvo, amounted to £0.6 million versus £3.1m the earlier yr.

Its banking companion HSBC has launched new covenant “hurdles” requiring the enterprise to deal with quarterly EBITDA targets within the yr forward.

“Buying and selling for brand new vehicles and aftersales remained sturdy,” stated chief government Simon Caffyn, “nevertheless, the used automobile market suffered a big worth correction within the ultimate calendar quarter of 2023 which, together with rates of interest and vitality prices at elevated ranges and inflationary pressures on the associated fee base, had a detrimental impression on our second half efficiency.”

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