Final Results

Caffyns PLC
31 May 2000


                               CHAIRMANS REPORT


RESULTS

The trials and tribulations of the retail motor industry have been well
documented and so the result for the year ended 31st March 2000 is highly
commendable and I thank all members of staff for their hard work.

The Group's consolidated profits before tax for the year ended 31st March 2000
were £2.15m compared with the previous years pre-tax profits of £1.86m.
Earnings per ordinary share were 51.3p (1999: 46.7p).

DIVIDEND

An interim dividend of 5.5p per ordinary share was paid on 7th January 2000.
A final dividend of 9.5p which would cost £316,000 is now being recommended
which, if approved will be payable on 25th July 2000 to shareholders on the
register on 30th June 2000.  This will result in a total dividend for the year
of 15.0p per ordinary share (1999: 14.5p).

FINANCE

Borrowing at 31st March 2000 were £5.7m (1999: £9.7m) which, as a proportion
of shareholders funds at the year end, gave rise to gearing of 24% (1999: 42%).
Interest was covered 4.1 times by operating profits (1999: 2.8 times).

PEOPLE

It has also been an important year as we have appointed a new finance
director, Mark Harrison, who takes over from my brother Robert on the 1st June
2000.  During his many years in charge of the finance and administration of
the company, Robert has made certain that we were always at the forefront of
modern technology which in turn has made the management of the business that
much easier.

PROSPECTS

Our pension contribution holiday has ended and there will be a charge to the
profit and loss account of approximately £250,000 in the year ending 31st
March 2001.  However, since the year end we have exchanged contracts on the
sale of one branch which is likely to result in a surplus of approximately
£300,000.

As the chief executive notes there is much uncertainty ahead of us but like
him, I feel that your board has taken the correct decisions to ensure that we
shall be well placed to take advantage of any opportunities that may arise.

31st May 2000                           A M Caffyn
                                        Chairman


                    CHIEF EXECUTIVES REVIEW

RESULTS
   I am very pleased to be able to report a record profit
for the company. Despite a small reduction in turnover
and a new charge of £170,000 for freehold property
depreciation, the profit before tax has increased by 16 %
from £1.86 million to £2.15 million. A great deal of
work has been undertaken by all our staff to achieve this
improvement in what has been a very difficult year for
our industry and I am very grateful for all of their
efforts. Particular mention must go to our regional
directors who have worked closely with their branches to
produce this overall figure.

COMPETITION COMMISSION
   Trading conditions have not been enhanced by the
review of the Motor Industry by the Competition
Commission. The delay in publication of its report meant
that customers continued to put off buying decisions and
also caused heavy depreciation of second hand cars which
affected both our levels of enquiry and the values of our
used car stocks.

   We broadly welcome the findings of the Report, which
was finally published in April. However I do not believe
that Block Exemption, which is in place across Europe, is
responsible for the discrepancies in prices between the
UK and the Continent. This is more a result of excessive
discounting to fleet buyers by some manufacturers, which
is subsidised by the retail customer. The differences in
the levels of tax charged on car purchases by European
governments, which is able to be reclaimed by foreign purchasers
exporting the car for use in another country, causes
problems. Taxation in country of purchase would resolve
this.

  We together with most of the large dealer groups
continue to ask for reductions in both retail prices and
for lower discounts to fleets. The recent move by Rover
to cut their prices demonstrated that there is great
demand for sensibly priced cars. Last month our April Rover sales
were over four times those of the same month in the previous year.

FRANCHISES AND PREMISES
   During the year we have completed a number of
investments in premises. In Folkestone we have opened a
new Vauxhall Master-Fit operation, which is a part of our
large Vauxhall territory in East Kent. The centre of this
operation is in Ashford and we are on target to complete
a major development in the Orbital Park site near the
International Railway Station. This will also be the site
for our successful Skoda dealership.

   In Eastbourne we have nearly completed an external
refurbishment of our Rover dealership and in Lewes we now
have a successful stand-alone Rover site.

   Volkswagen have a very impressive design for their
franchise locations and we have now completed a major
redevelopment of our site in Worthing and we are working
on a similar concept in our Haywards Heath territory.

   Our Ford operation in Alton is now contributing to
profits after relocating to smaller and more visible
premises.

   The workshop facilities in Sevenoaks Peugeot are now
complete and we are about to begin work on a new
showroom. We are very pleased to have been appointed
Peugeot agents and the outlook for Sevenoaks is very
encouraging.

   In Canterbury we were sad to lose the Citroen
franchise, and in Crowborough, where the facilities have
become too large for the local market, we are redirecting
customers to Tonbridge, Tunbridge Wells and Uckfield. Both sites 
are in the process of being sold at a premium to book value
and we are looking to retain as many staff as possible in
nearby locations.

   Having finished the major redevelopment of Lewes Land
Rover and amalgamated our Heathfield operation at this
site, I am delighted to see such excellent results.

   The success of Mercedes-Benz, Jaguar and Audi
continues with excellent results from all of these
businesses, with both Skoda and Vauxhall also beginning to
perform well.

   After the recent problems with Rover we are very
pleased to see the Phoenix consortium acquire the
company. Much work has to be done but a joint venture
with another manufacturer would give Rover every chance
of success.

TECHNOLOGY
   I am very pleased to report that as a result of good
planning we were unaffected by the Millennium Bug. Many
staff throughout the company worked very hard during the
run up period and over New Year to ensure we had no
problems and I am grateful to them for their commitment.

   We already have an internet site, caffyns.co.uk, and
we are on the verge of launching a new facility to enable
customers to search our entire used car stocks on-line.
We continue to keep abreast of developments in this field
and to capitalise on the more innovative ideas.

PEOPLE
   After 38 years with the company, Robert Caffyn retires
as finance director in June this year. Under Robert's
guidance the finance and administration of the company has been in
excellent hands and we are enormously grateful to him for
his huge contribution in all areas of the business.

   We were fortunate to have a number of excellent
candidates apply for the position of finance director and
we are delighted to welcome Mark Harrison who has joined
the company and takes over the role from Robert.

   As always our non-executive directors and professional
advisers have given us invaluable advice and assistance
during the year. I am particularly grateful for their
considerable help with the recruitment of our new
director.


   I began by reporting our improved result, which is a
testament to the hard work, commitment and loyalty of our
staff. We remain, as an industry, in uncharted waters,
but I am confident that the company is in a good position
to take advantage of any upturn.


31st May 2000               S G M Caffyn
                            Chief Executive  

Caffyns plc

Preliminary Announcement
For the year ended 31st March 2000
Consolidated Profit and Loss Account
                                                                   
                                    Note       2000              1999
                                               £'000             £'000
                                                                   
Turnover                                      147,305           151,610
                                                                   
Cost of sales                                (126,586)         (131,013)
                                                                   
Gross profit                                   20,719            20,597
                                                                   
Other operating charges                       (17,877)          (17,720)
                                                                   
Operating profit                                2,842             2,877
                                                                   
Exceptional items                    2              5                 3
                                                                   
Interest payable                                 (696)           (1,022)
                                                                   
Profit on ordinary activities                   2,151             1,858
before taxation
                                                                   
Taxation                             3           (345)             (215)
                                                                   
Profit on ordinary activities                   1,806             1,643
after taxation                                                                
  

Dividends (equity and non-equity)    4           (601)             (574)
Transfer to reserves                 5          1,205             1,069
                                                                   
Earnings per ordinary share                                        
Basic                                           51.3p             46.7p
Diluted                                         50.7p             46.2p
                                                                   
Note of Historical Cost Profit and Losses                                     

                                                                   
Reported profit on ordinary                    2,151             1,858
activities before taxation
Realisation of property                          163             1,160
revaluation surpluses
Historical cost profit on                      2,314             3,018
ordinary activities before
taxation                                                           
Historical cost transfer to                    1,368             2,229
reserves
                                                                   

There were no recognised gains or losses other than the profit for the
financial year.


Caffyns plc

Preliminary Announcement for the year ended 31st March 2000
Balance Sheets at 31st March 2000

                            Note     Group     Group      Company    Company
                                     2000      1999        2000       1999
                                     £'000     £'000       £'000      £'000
                                                                              
 
Fixed Assets                                                                  
   
Tangible assets                     24,077    23,588      23,914     23,418
Investments                            -         -           250        250
                                    24,077    23,588      24,164     23,668
                                                                              
   
Current Assets                                                                
   
Stocks                              21,647    22,541      19,399     20,453
Debtors                              5,895     8,432       6,865      9,491
                                    27,542    30,973      26,264     29,944   
     
                                                                       
Creditors                                                                     
   
Amounts  falling due                22,353    23,700      21,540     22,932
within one year
                                                                              
 
Net Current Assets                   5,189     7,273       4,724      7,012
                                                                              
   
Total Assets Less Current                                                     
   
Liabilities                         29,266    30,861      28,888     30,680
                                                                              
   
Creditors                                                                     
   
Amounts falling due after                                                     
   
more than
One year                             4,937     7,744       4,937      7,744
                                                                              
   
Provisions for liabilities             150       150         150        150   
and charges
                                    24,179    22,967      23,801     22,786   
                         
                                                                              
   
Capital and Reserves                                                          
   
Called up share capital              2,899     2,897       2,899       2,897
Share premium account                   58        53          58          53
Revaluation reserve                  5,419     5,582       5,419       5,582
Profit and loss account             15,803    14,435      15,425      14,254
                                    24,179    22,967      23,801      22,786
                                                                              
   
Equity shareholders' funds          22,942    21,730      22,564      21,549
Non-equity shareholders'             1,237     1,237       1,237       1,237
funds
Total shareholders' funds     5     24,179    22,967      23,801      22,786

                                                                              
   
The financial statements were approved by the Board of Directors on 31st May
2000.                                                                         
        
                                                                            

Caffyns Plc

Preliminary Announcement for the year ended 31st March 2000
Consolidated Cash Flow Statement for the year ended 31st March 2000


                     Note             2000               1999               
                             £'000   £'000   £'000      £'000
                                                                 
Net cash inflow                                                  
from
Operating              6             6,884                770
activities
                                                                 
Returns on                                                       
investment and
Servicing of                                                     
finance
Interest paid                (696)           (1,022)             
                                               
Preference                    (98)              (91)               
dividends paid
                                     (794)             (1,113)
                                                                 
                                                                 
Taxation                                                         
UK Corporation tax                   (302)               (312)
paid
                                                                 
Capital                                                          
expenditure
Purchase of                  (1,582)         (2,356)             
tangible fixed                                
assets
Sale of tangible                267           3,767               
fixed assets
                                    (1,315)              1,411
                                       
                                                                 
Equity dividends                      (483)               (465)
paid
                                                                 
Cash inflow before                   3,990                 291
financing
Financing                                                        
Capital element of             (104)             (96)                       
finance leases 
Issue of shares                   7                4                 
Repayment of                 (3,498)          (2,317)                     
amounts borrowed                     
Net cash outflow                    (3,595)             (2,409)             
from                                          
financing                                                        
Increase (decrease)  7,8               395              (2,118)
in cash
Caffyns plc

Notes to the Preliminary Announcement for the year ended 31st March 2000

1   Basis of preparation
    
    This preliminary statement which does not constitute statutory accounts
    as defined in section 240 of the Companies Act 1985, has been extracted
    from the statutory financial statements of the company for the year ended
    31st March 2000 on which the auditors issued an unqualified audit opinion
    on 31st May 2000.  These financial statements have not yet been delivered
    to the Registrar of Companies.
    
    The financial statements have been prepared using accounting policies
    which are consistent with previous years.  Financial Reporting Standards No 
   15 on tangible fixed assets and No 16 on current taxation have been applied
    for the first time this year.         

2   Exceptional items

    Arising in respect of branch closures:

                                                2000       1999
                                                £'000      £'000

    - Closure costs                             (82)       (256)
    - Impairment review of freehold property      -        (220)
    - Profit on disposal of fixed assets         87         479
    Net receipt                                   5           3

    The closure costs and profit on disposal related to the surplus on and
    related costs incurred as a result of closing a branch in the year.
    The impairment review in 1999 related to a reduction in value of one of
    the Group's freehold properties.
    
3   Taxation

    The Group's UK corporation tax charge has been reduced by £25,000 (1999 -
    £79,000) as a result of the exceptional costs (note 2).  There is no
    corporation tax charge arising on the exceptional profit due to the
    availability of roll-over relief.  No tax relief will be available on the
    impairment provision until it becomes a realised capital loss.
    
4   Dividends

    Non equity
    Preference
    6.5% Cumulative First Preference                 25   18
    6.0% Cumulative Second Preference                12    9
    10% Cumulative Preference                        65   65
                                                    102   92
    Equity
    Ordinary:
    Interim dividend paid of 5.5p (1999 - 5.5p)     183  183
    Final dividend proposed of 9.5p (1999 - 9.0p)   316  299
                                                    499  482
    Total                                           601  574

    
    

Caffyns plc

Notes to the Preliminary Announcement for the year ended 31st March 2000

5  Reconciliation of movements in shareholders' funds

                                  Group           Group
                                   2000            1999
                           £'000   £'000   £'000   £'000
   Profit for the                  1,806           1,643
   financial year
   Dividends                        (601)           (574)
                                   1,205           1,069
   Equity shares issued                7               4   
   in year
   Net increase in                                
   shareholders
   Funds                           1,212           1,073
   Brought forward at 1st         22,967          21,894
   April
   Carried forward at             24,179          22,967
   31st March
                                               
   Shareholders' Funds                            
   are attributable as                                
   follows:
   Equity interests               22,942          21,730
   Non-equity interests                           
   6.5% Cumulative First                          
   Preference shares of   389             389     
   £1 each
   10% Cumulative                                 
   Preference
   Shares of £1 each      648             648     
   6% Cumulative Second                           
   Preference shares of   200             200     
   10p each
                                   1,237           1,237
                                  24,179          22,967
                                               
6  Reconciliation of operating profit to net cash inflow from 
   operating activities:                          
                  
   
                            
                                          Group   Group
                                          2000    1999             
                                          £'000   £'000
   Operating profit                       2,842   2,877
   Adjustment for                             5       3
   exceptional items
   Depreciation charge                      894     692
   Impairment of tangible                         
   fixed assets                             -       220
   Profit on sale of                              
   tangible fixed assets                   (68)    (465)
   Decrease in stocks                      894    1,235
   Decrease/(increase) in                2,535   (3,164)
   debtors
   Decrease in creditors                  (218)    (628)
   Net cash inflow from                           
   operating
   Activities                            6,884      770
                                               
7  Reconciliation of net cash flow to movement in net debt                    
     
                              
                                               
   Increase/(decrease) in                         
   cash in the year                         395   (2,118)
   Cash outflow from                              
   decrease in debt                       3,498    2,317
   Cash outflow from                              
   capital repayments
   of finance leases                        104       96
   Movement in net debt                   3,997      295
   in the year
   Net debt at 1st April                 (9,732) (10,027)
   Net debt at 31st March                (5,735)  (9,732)
                                       

Caffyns plc

Notes to the Preliminary Announcement for the year ended 31st March 2000


8  Analysis of net debt

                              At                                At
                      31st March 2000   Cashflow           1st April 1999
                            £'000       £'000                  £'000
                                                              
   Overdrafts               2,811        (395)                 3,206
                                                              
   Debt falling due         1,500      (1,498)                 2,998
   within 1 year
   Debt falling due after                                        
   more than 1 year         1,000      (2,000)                 3,000
   Finance leases             424        (104)                   528
                            2,924      (3,602)                 6,526
                                                              
   Total                    5,735      (3,997)                 9,732