Stock issues and economic challenges hamper Caffyns PBT in H1

Caffyns has reported a profit before tax of £1.6m (2021: £2.3m) for six months to 30 September.

The drops was caused by “ongoing disruption to new car supply and current economic challenges”.

On supply it said: “The majority of the manufacturers we represent remained muted due to the continuing effects of the global shortage in semiconductors and battery components restraining manufacturers’ production levels. We expect this shortage to begin to dissipate during the 2023 calendar year.”

Revenue increased to £118.9m, up from £110.7m in the previous period.

This was primarily due to strong used car prices.

During the period, Caffyns extended its representation with Lotus, opening in Lewes on 1 June 2022.

Looking forward, it said that buoyant demand for used cars and an “elevated” forward-order bank for new cars is encouraging for 2023 when it is hoped that new car availability will improve.

Caffyns said: “However, in the short-term new cars are expected to remain in short supply and the high level of economic uncertainty, including the price and availability of energy over the winter months, is a concern. Given these uncertainties, the board remains cautious for the second half of the financial year.”