Car dealership Caffyns PLC (LON:CFYN) has reported flat revenues for the first half, however, a better than expected performance in its used car and aftersales segments saw profits boosted by 60%.
The firm reported an underlying pre-tax profit for the 6 months to 30 September of £1.2mln, up from £743,000 the year before, while revenues fell slightly to £105mln from £106.5mln.
Emissions regulations choke off new car deliveries
Across the segments, the group reported that like-for-like (LFL) new car sales were down 10.4% against a 1.9% fall in UK retail and small business market segment registrations, adding that deliveries had been “heavily impacted” by stock shortages caused by new EU emissions regulations.
However, LFL used car unit sales rose 6.7% during the period while aftersales LFL revenues jumped 9% alongside its parts business which also grew 9%.
The interim dividend was maintained at 7.5p per share.
In its outlook, Caffyn said that despite a weak marketplace for the bi-annual registration plate change in September, industry consensus for 2018 was no more than a single-digit fall in the UK new car market, and therefore the firm was “cautiously optimistic about the outlook”.
However, the company added that its full-year outcome would “remain dependent on the success of the next bi-annual registration plate change in March 2019” as well as the “wider challenges” caused by Brexit uncertainty.
READ: Auto Trader shares motor as it ups full-year revenue guidance after strong first half
Caffyns wasn’t the only car dealer seemingly shrugging off uncertainty in the market, with FTSE 250 digital car marketplace Auto Trader Group PLC (LON:AUTO) increasing its full-year revenue guidance earlier this month after reporting a 9% increase in its pre-tax profits for the half-year.
In early trading Friday, Caffyns shares were steady around 405p.