Caffyns, the AM automobile vendor group primarily based in East Sussex, has blamed a 30% decline in earnings on to inflation and better enterprise charges in its newest monetary yr.

In line with its preliminary outcomes for the yr ended March 31, 2023, underlying revenue earlier than tax fell from £4.3 million within the earlier fiscal yr to £3.1 million.

The corporate acknowledged that profitability was affected by rising prices in areas reminiscent of enterprise charges and overhead bills in an inflationary setting. Regardless of the lower in earnings, chief government Simon Caffyn remained optimistic, highlighting that the £3.1 million revenue was nonetheless considerably larger than pre-pandemic ranges.

On a constructive be aware, Caffyns reported a 12% enhance in income, amounting to £251.4 million, with £25 million coming from new and used automobile gross sales. New automobile deliveries skilled a considerable 34% surge, whereas used automobile gross sales declined by 4%.

The corporate talked about that it was increasing its sources for replenishing used automobile stock as a result of a scarcity of autos lower than three years previous.

Aftersales revenues additionally noticed a 9 p.c enhance, reaching £27 million.

Caffyns excluded the influence of its MG and Lotus dealerships in Ashford, Kent, and its Lotus showroom in Lewes, East Sussex, which all opened throughout the yr, from its like-for-like comparisons.

The corporate expressed optimism about its Lotus enterprise alternative however famous underperformance in its Vauxhall enterprise in Ashford. Moreover, Caffyns highlighted subdued enterprise at its Motorstore used automobile showroom in Ashford as a result of challenges in sourcing inventory.

One other used automobile centre referred to as ‘Efficiency Motorstore’ has been opened alongside the Lotus showroom in Lewes.

Trying forward, Caffyns supplied a cautious outlook for the long run, citing price will increase and potential disruptions as some producers transition to company gross sales. Regardless of the challenges, the corporate stays decided to navigate the evolving market circumstances and maintain its progress.