Interim Results

Caffyns PLC
28 November 2001



CAFFYNS PLC

INTERIM RESULTS FOR THE HALF-YEAR ENDED 30 SEPTEMBER 2001


*   Operating profits in half-year of £1,782,000 (2000: £1,131,000).

*   Exceptional charges of £114,000 arose on closure of a branch (2000:
    gains of £1,149,000 on disposal of two branches).

*   Pre-tax profits (after exceptional items) of £1,287,000 (2000: £ 2,005,000).

*   Increased interim dividend of 6.0p per ordinary share (2000: 5.5p).



CAFFYNS PLC

CHAIRMAN'S STATEMENT

Turnover in the half-year to 30 September 2001 was £82.5m against £72.7m the
previous year. Operating profit was £1,782,000 against £1,131,000 the year
before, an increase of 57%. Exceptional losses of £114,000 arose from closure
costs but there will be greater exceptional gains on the anticipated disposal
of property in the second half. Pre-tax profits are £1,287,000 against £
2,005,000 which, after allowing for last year's exceptional gain of £
1,149,000, are most encouraging.

The industry is still awaiting the publication of the future regulation after
Block Exemption expires in September 2002 but, as our turnover shows, we have
experienced stronger demand for new cars this year following the price
realignment undertaken by manufacturers in the latter part of 2000. In
addition to this, we have increased our sales of used cars and after-sales
services.

Current international events make the predication of our year-end result
difficult, but I am very pleased with our half-year performance and, if the
economic climate remains stable, I am optimistic that our year-end result will
be an improvement on last year.

Your Directors have agreed to pay an increased interim dividend of 6.0p per
ordinary share amounting to £204,000. This will be paid on 15 January 2002 to
shareholders on the register at 5.00 p.m. on 14 December 2001.


A M Caffyn
Chairman
28 November 2001



CAFFYNS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE HALF-YEAR ENDED 30 SEPTEMBER 2001


                               Half-year to     Half-year to        Year to 31
                               30 Sept 2001     30 Sept 2000        March 2001
                      Note            £'000            £'000             £'000

  TURNOVER                           82,466           72,700           143,401
                                 ----------       ----------      ------------
  OPERATING PROFIT                                                            
  Continuing                          1,782            1,387             2,101
  operations                                                                  
  Discontinued                            -            (256)           (1,348)
  operations                                                                  
                                 ----------       ----------        ----------
  TOTAL OPERATING                     1,782            1,131               753
  PROFIT                                                                      
  Exceptional items      2            (114)            1,149               939
                                 ----------       ----------        ----------
                                      1,668            2,280             1,692
  Interest payable                    (381)            (275)             (600)
                                 ----------       ----------        ----------
  PROFIT ON                           1,287            2,005             1,092
  ORDINARY                                                                    
  ACTIVITIES                                                                  
  BEFORE TAXATION                                                             
  Taxation               3            (171)            (136)               108
                                 ----------       ----------        ----------
  PROFIT ON                           1,116            1,869             1,200
  ORDINARY                                                                    
  ACTIVITIES AFTER                                                            
  TAXATION                                                                    
  DIVIDENDS              4            (255)            (234)             (611)
  (EQUITY AND                                                                 
  NON-EQUITY)                                                                 
                                 ----------       ----------        ----------
  RETAINED PROFIT                       861            1,635               589
                                 ----------       ----------        ----------
  Earnings per           5                p                p                 p
  ordinary share                                                              
  Basic                                31.4             54.7              32.8
  Diluted                              31.3             54.3              32.7
                                 ----------       ----------        ----------
  Dividend per                          6.0              5.5              15.0
  ordinary share                                                              
                                 ----------       ----------        ----------


The comparative results for the half-year to 30 September 2000 and year to 31
March 2001 have been restated (see note 1) following implementation of FRS19
(deferred tax).



CAFFYNS PLC
CONSOLIDATED BALANCE SHEET
AT 30 SEPTEMBER 2001


                         30 September 2001   30 September 2000   31 March 2001
                                     £'000               £'000           £'000
  FIXED ASSETS                                                                
  Intangible assets                     18                   -              24
  Tangible assets                   25,725              23,834          25,022
                                 ---------           ---------       ---------
                                    25,743              23,834          25,046
                                 ---------           ---------       ---------
  CURRENT ASSETS                                                              
  Stocks                            17,737              17,699          18,319
  Consignment stocks                 5,930               1,750           3,777
  Debtors                            6,826               5,032           6,262
                                 ---------           ---------       ---------
                                    30,493              24,481          28,358
                                 ---------           ---------       ---------
  CREDITORS : amounts                                                         
  falling due within                                                          
  one year                                                                    
  Short term                         6,300               2,728           4,219
  borrowings                                                                  
  Obligations under                    135                 123             129
  finance leases                                                              
  Obligations                        5,930               1,750           3,777
  relating to                                                                 
  consignment stock                                                           
  Other                             13,936              13,699          15,054
                                 ---------           ---------       ---------
                                    26,301              18,300          23,179
                                 ---------           ---------       ---------
  NET CURRENT ASSETS                 4,192               6,181           5,179
                                 ---------           ---------       ---------
  TOTAL ASSETS LESS                 29,935              30,015          30,225
  CURRENT LIABILITIES                                                         
                                 ---------           ---------       ---------
  CREDITORS : amounts                                                         
  falling due after                                                           
  one year                                                                    
  Long term borrowings             (2,000)             (1,000)         (2,000)
  Obligations under                  (106)               (241)           (177)
  finance leases                                                              
  Other                            (1,417)             (2,869)         (2,250)
                                 ---------           ---------       ---------
                                   (3,523)             (4,110)         (4,427)
                                 ---------           ---------       ---------
  PROVISIONS FOR                     (761)               (211)         (1,008)
  LIABILITIES AND                                                             
  CHARGES                                                                     
                                 ---------           ---------       ---------
  NET ASSETS                        25,651              25,694          24,790
                                 ---------           ---------       ---------
  CAPITAL AND RESERVES                                                        
  Called up share                    2,935               2,899           2,935
  capital                                                                     
  Share premium                        164                  58             164
  account                                                                     
  Revaluation reserve                4,308               4,577           4,308
  Profit and loss                   18,244              18,160          17,383
  account                                                                     
                                 ---------           ---------       ---------
  CAPITAL EMPLOYED                  25,651              25,694          24,790
                                ----------          ----------       ---------


The comparative results for the half-year to 30 September 2000 and year to 31
March 2001 have been restated (see note 1) following implementation of FRS19
(deferred tax).



CAFFYNS PLC
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS


                           Half-year to 30   Half-year to 30        Year to 31
                                 Sept 2001         Sept 2000        March 2001
                                     £'000             £'000             £'000

  Profit for the period              1,116             1,869             1,200
  Dividends                          (255)             (234)             (611)
                                ----------        ----------        ----------
                                       861             1,635               589
  Issue of shares                        -                 -               142
  Opening                           24,838            24,179            24,179
  shareholders' funds                                                         
  - previously stated                                                         
  Prior year                          (48)             (120)             (120)
  adjustment (see note                                                        
  1)                                                                          
                                ----------        ----------        ----------
  Closing                           25,651            25,694            24,790
  shareholders' funds                                                         
                                ----------        ----------        ----------

CAFFYNS PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE HALF-YEAR ENDED 30 SEPTEMBER 2001


                                  Half-year to    Half-year to      Year to 31
                                  30 Sept 2001    30 Sept 2000      March 2001
                                         £'000           £'000           £'000
  Cash inflow from operating                                                  
  activities                                                                  
  Operating profit                       1,782           1,131             753
  Depreciation                             510             449             921
  Amortisation of goodwill                   6               -               1
  Loss on disposal of                       74               -               -
  tangible fixed assets                                                       
  (Increase)/decrease in               (1,571)           2,198               9
  stocks                                                                      
  (Increase)/decrease in                 (701)             818           (275)
  debtors                                                                     
  Increase/(decrease) in                   202         (3,149)           (169)
  creditors                                                                   
  (Decrease)/increase in                 (229)               -             735
  provisions                                                                  
                                     ---------       ---------       ---------
  Net cash inflow from                      73           1,447           1,975
  operating activities                                                        
                                     ---------       ---------       ---------
  Returns on investments and                                                  
  servicing of finance                                                        
  Interest paid                          (381)           (275)           (600)
  Preference dividends paid               (51)            (50)           (102)
                                     ---------       ---------       ---------
                                         (432)           (325)           (702)
                                     ---------       ---------       ---------
  Taxation                                                                    
  Corporation tax                          100           (106)           (353)
  refunded/(paid)                                                             
                                     ---------       ---------       ---------
  Capital expenditure and                                                     
  financial investment                                                        
  Purchase of tangible fixed           (1,327)         (2,324)         (3,524)
  assets                                                                      
  Closure costs                          (114)            (92)           (260)
  Sale of tangible fixed                     7           3,359           4,024
  assets                                                                      
                                     ---------       ---------       ---------
                                       (1,434)             943             240
                                     ---------       ---------       ---------
  Acquisitions                               -               -         (1,590)
                                     ---------       ---------       ---------
  Equity dividends paid                  (323)           (316)           (502)
                                     ---------       ---------       ---------
  Cash flow before financing           (2,016)           1,643           (932)
                                     ---------       ---------       ---------
  Financing                                                                   
  Issue of shares                            -               -             142
  Loan advances/(repayments)             1,000         (1,250)             500
  Capital element of finance              (65)            (60)           (118)
  lease                                                                       
                                     ---------       ---------       ---------
  Net cash inflow/(outflow)                935         (1,310)             524
  from financing                                                              
                                     ---------       ---------       ---------
  (Increase)/decrease in               (1,081)             333           (408)
  overdrafts                                                                  
                                     ---------       ---------       ---------
  Reconciliation of net cash                                                  
  flow to movement in net                                                     
  debt                                                                        
                                                                              
  (Decrease)/increase in               (1,081)             333           (408)
  cash in the period                                                          
  Cash (inflow)/outflow from           (1,000)           1,250           (500)
  movements in debt                                                           
  Cash outflow from capital                 65              60             118
  repayments of finance                                                       
  leases                                                                      
                                     ---------       ---------       ---------
  Movement in net debt in              (2,016)           1,643           (790)
  the period                                                                  
                                                                              
  Net debt at beginning of             (6,525)         (5,735)         (5,735)
  period                                                                      
                                     ---------       ---------       ---------
  Net debt at end of period            (8,541)         (4,092)         (6,525)
                                     ---------       ---------       ---------


CAFFYNS PLC
NOTES TO THE INTERIM RESULTS
FOR THE HALF-YEAR ENDED 30 SEPTEMBER 2001


1.    BASIS OF PREPARATION

The directors approved this interim statement on 28 November 2001.

The interim accounts for the half year ended 30 September 2001 and the
comparative figures for the half year ended 30 September 2000 are unaudited,
and have been prepared on the same basis as the accounts for the year ended 31
March 2001 except that certain comparative figures have been restated in order
to ensure comparability with the interim accounts for the half year ended 30
September 2001.

There have been no significant changes to the group's accounting policies
other than those required by Financial Reporting Standard Number 19 Deferred
Tax (FRS19). The change in policy as a result of adopting FRS19 has meant that
the taxation figures disclosed for the six months to 30 September 2000 and
year ended 31 March 2001 have been restated. The effect on the figures has not
been material. The new accounting policy adopted as a result of FRS 19 is as
follows:

Deferred tax is recognised on all timing differences where the transactions or
events that give the group an obligation to pay more tax in the future, or a
right to pay less tax in the future, have occurred by the balance sheet date.
Deferred tax on defined benefit pension scheme surpluses or deficits is
adjusted against these surpluses. Deferred tax assets are recognised when it
is more likely than not that they will be recovered.  Deferred tax is measured
using rates of tax that have been enacted or substantively enacted by the
balance date.

The financial information for the year ended 31 March 2001 has been abridged
from the statutory accounts which have been filed with the Registrar of
Companies and on which the auditors have given an unqualified audit opinion.

The interim financial statements have been reviewed by the company's auditors.
A copy of the auditors' review report is set out at the end of this statement.


2.    EXCEPTIONAL ITEMS

                        Half-year to 30     Half-year to 30   Year to 31 March
                              Sept 2001           Sept 2000               2001
                                  £'000               £'000              £'000
                                                                              
  Net profits on                      -               1,242              1,199
  disposal of                                                                 
  tangible fixed                                                              
  assets                                                                      
                                                                              
                                                                              
  Closure costs                   (114)                (93)              (260)
                              ---------           ---------          ---------
                                  (114)               1,149                939
                              ---------           ---------          ---------


3.    TAX ON PROFIT ON ORDINARY ACTIVITIES

                                                                             
                                 Half-year to     Half-year to      Year to 31
                                 30 Sept 2001     30 Sept 2000      March 2001
                                        £'000            £'000           £'000
                                                                              
  Current UK                                                                  
  corporation tax at 30%                                                      
  (Charge)/credit for                   (388)            (243)             150
  the period                                                                  
  Advance corporation                     199               93           (100)
  tax                                                                         
  Over-provision in                         -                -             106
  respect of prior years                                                      
                                     --------         --------        --------
  Total corporation tax                 (189)            (150)             156
                                                                              
  Deferred tax at 30%                                                         
  Credit/(charge) for                      60               40           (148)
  timing differences in                                                       
  the period                                                                  
  ACT set off                            (42)             (26)             100
                                     --------         --------        --------
                                        (171)            (136)             108
                                     --------         --------        --------


4.    DIVIDENDS

Ordinary shares of 50p each

The interim dividend proposed at the rate of 6.0p per share (2000 - 5.5p) is
payable on 15 January 2002 to shareholders on the register at the close of
business on 14 December 2001. The shares will be marked ex-dividend on 12
December 2001.

Preference shares

Preference dividends have been paid in October 2001. The next preference
dividends are payable in April 2002.


5.    EARNINGS PER ORDINARY SHARE

The basic and diluted earnings per ordinary share are calculated on the profit
after tax and preference dividend and on the weighted average number of
ordinary shares as detailed below:


                                   Profit after tax and        
                                   preference dividends      Basic     Diluted
                                                  £'000       '000        '000

   30 September 2001                              1,065      3,396       3,405
   31 March 2001                                  1,098      3,350       3,353
   30 September 2000                              1,818      3,324       3,349



6.    INTERIM STATEMENT

The interim statement will be posted to ordinary and preference shareholders
by 10 December 2001. Copies will also be available to the public at the
registered office of the company at Saffrons Room, Meads Road, Eastbourne,
BN20 7DR.


INDEPENDENT REPORT REVIEW TO CAFFYNS PLC


Introduction

We have been instructed by the company to review the financial information set
out on pages 3 to 7 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.


Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors
are responsible for preparing the interim report in accordance with the
Listing Rules of the Financial Services Authority which require that the
accounting policies and presentation applied to the interim figures should be
consistent with those applied in preparing the preceding annual accounts
except where any changes, and the reasons for them, are disclosed.


Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999
/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of management and applying
analytical procedures to the financial information and underlying financial
data and, based thereon, assessing whether the accounting policies and
presentation have been consistently applied unless otherwise disclosed. A
review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope than
an audit performed in accordance with United Kingdom Auditing Standards and
therefore provides a lower level of assurance than an audit. Accordingly, we
do not express an audit opinion on the financial information.


Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2001.


Grant Thornton
Chartered Accountants


Brighton
28 November 2001