Caffyns' profits hit by RVs and building works

SLIDING residual values, franchise changes and building works disruption have been blamed for a slump in profits and turnover at motor dealer and contract hire group Caffyns. Turnover dropped to £80 million for the six months to the end of September, compared with £87 million for the same period last year and pre-tax profits were down £411,000 to £859,000.

One of the biggest changes came in its forecourt petrol operation, which dropped to six stations after the loss of five previously leased from Shell which the oil giant took back. But company secretary Robert Caffyn said that residual values were also partially to blame, affecting the used car sales operation and its 2,500-strong contract hire division, Caffyns Motor Contracts, although exact figures were not revealed. Structural changes to showrooms have added to costs, he said and added that some franchises had been lost, such as the Rover dealership in Horsham, while others had increased in size, including Rover in Worthing.