Interim Management Statement

RNS Number : 6774X

Caffyns PLC

17 February 2012

INTERIM MANAGEMENT STATEMENT

17 February 2012

Caffyns plc ("Caffyns" or the "Company")

This Interim Management Statement by Caffyns plc covers the period from 1 October 2011 to 16 February 2012.

Performance

During the four months ended 31 January 2012, the Company's unit sales of new cars were 1.4% down on the equivalent period in the previous year on a like-for-like basis. The overall UK new car market fell 1.3% in the period whilst our main market in the private and small business sector has fallen by 8.6%.

Caffyns' used car unit sales were down by 11.7% on a like-for-like basis in the four month period reflecting the uncertain economic climate. Aftersales turnover was similarly affected and was down 3.6% on a like-for-like basis, with reduced sales also due to the reduction in the number of one to three year old cars in circulation.

The new showroom for our Land Rover dealership in Lewes is now complete, on schedule and budget, with the business returning to normal trading after significant onsite disruption. Also, as previously proposed, the bodyshop in Ashford has now been closed allowing us to expand our Skoda operation on this site.

Property

As announced on 25 November 2011 in our Half Yearly Report, the Company had submitted a planning appeal against the refusal for change of use of our Preston Road site in Brighton. The appeal has recently been upheld and the agreement with Sainsbury's Supermarkets Limited to lease the site has today been completed. We have also agreed a sale of this property to Shell Trust (UK Property) Limited, which has consequently now become unconditional, for £2.7 million receivable in cash by 29 February 2012. The net gain on sale is approximately £2.0 million. The proceeds will be applied in reducing the Company's borrowings.

Trading

Trading conditions remain challenging but, following our substantial restructuring, we are well placed to take advantage of any upturn in the economy. Our strong balance sheet enables us to consider acquisitions should suitably attractive opportunities arise.

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