Trading Statement

Caffyns PLC
16 July 2007




Caffyns plc - VAT Claim


On 20 March 2007, Caffyns plc ('the Company') announced that it had received
£2.978m from HM Revenue & Customs ('HMRC') in respect of a claim relating to VAT
overpaid on demonstrator vehicle bonuses. The amount received comprised the
claim of £1.378m and interest of £1.6m.


There was uncertainty relating to the retention by the Company of the monies
received pending the outcome of a case due to be heard in the House of Lords
later this year. Following a change of view by HMRC, confirmation has been
received that the monies can be retained by the Company and that their retention
is no longer dependent upon the outcome of this case.


The monies received (less professional costs incurred) amounting to
approximately £2.9m, will be treated as income in the Company's Income Statement
for the half-year ending 30 September 2007.



Enquiries:


Simon Caffyn
Chief Executive


Mark Harrison
Finance Director


Telephone: [phone]


16 July 2007



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