Interim Results

Caffyns PLC 27 November 2003 CAFFYNS PLC INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2003 Caffyns plc, the leading motor distributor based in south east England, today announced profits for the first half year. â€¢ Operating profit of Â£1,716,000 (2002: Â£1,679,000) â€¢ Profit before tax and exceptional items of Â£1,478,000 (2002: Â£1,671,000) â€¢ Basic earnings per share of 41.9p (2002: 114.9p). â€¢ Interim dividend of 7.5p per ordinary share (2002: 7.0p). For further information: Caffyns plc Simon Caffyn, Chief Executive Mark Harrison, Finance Director Telephone: 01323 730201 27 November 2003 CAFFYNS PLC CHAIRMAN'S STATEMENT In the six months to 30 September 2003, turnover has reduced from Â£79m to Â£76m due to a slower than expected first quarter. However, demand returned in the second quarter and despite redevelopment work at two major sites, the operating profit is in line with last year at Â£1,716,000 against Â£1,679,000. In July we acquired the Audi dealership covering Eastbourne and this is already making a useful contribution. We are redeveloping our Volkswagen dealerships in Haywards Heath and Eastbourne to cater for the increased demand and, although there will be short-term disruption to these businesses, the potential is strong. In common with many other companies in our sector, we have submitted a retrospective claim to HM Customs & Excise consequent to a change in VAT case law. The New Block Exemption Regulation is now in operation and I am pleased to report that we have signed new contracts for all our Dealerships. We are continuing to explore opportunities to develop further our franchise representation. Our profit before tax of Â£1,478,000 is a good result after the slow June quarter and we are positioned to perform well in our second half. As always, much depends on the economy and, in particular, the consumer reaction to upward movement in interest rates. Your Directors have agreed to an increased interim dividend of 7.5p per ordinary share amounting to Â£216,000. This will be paid on 14 January 2004 to shareholders on the register at 5.00pm on 12 December 2003. Brian A Carte Chairman 27 November 2003 CAFFYNS PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE HALF YEAR ENDED 30 SEPTEMBER 2003 Half year to Half year to Year to 30 September 30 September 31 March 2003 2002 2003 Note Â£'000 Â£'000 Â£'000 Turnover Continuing operations 74,403 78,988 148,483 Acquisition 1,601 - - ---------- ---------- ---------- 76,004 78,988 148,483 ---------- ---------- ---------- Operating profit Continuing operations 1,670 2,009 3,728 Acquisition 46 - - Exceptional costs on - (330) (330) discontinued operation ---------- ---------- ---------- Total operating profit 1,716 1,679 3,398 Exceptional items 2 - 2,348 1,919 ---------- ---------- ---------- 1,716 4,027 5,317 Interest payable (238) (338) (574) ---------- ---------- ---------- Profit on ordinary 1,478 3,689 4,743 activities before taxation Taxation 3 (222) (308) (473) ---------- ---------- ---------- Profit on ordinary 1,256 3,381 4,270 activities after taxation Dividends (equity and 4 (267) (257) (706) non-equity) ---------- ---------- ---------- Retained profit 989 3,124 3,564 ---------- ---------- ---------- Earnings per ordinary 5 p p p share Basic 41.9 114.9 144.0 Diluted 41.9 114.1 144.0 ---------- ---------- ---------- Dividend per ordinary 7.5 7.0 21.0 share ---------- ---------- ---------- Note of historical cost Â£'000 Â£'000 Â£'000 profits and losses Reported profit on 1,478 3,689 4,743 ordinary activities before taxation Realisation of property - (693) (693) revaluation deficits ---------- ---------- ---------- Historical cost profit on 1,478 2,996 4,050 ordinary activities before taxation ---------- ---------- ---------- Historical cost profit for 989 2,431 2,871 the period retained after taxation and dividends ---------- ---------- ---------- CAFFYNS PLC CONSOLIDATED BALANCE SHEET AT 30 SEPTEMBER 2003 30 September 30 September 31 March 2003 2002 2003 Â£'000 Â£'000 Â£'000 Fixed assets Intangible assets 103 22 10 Tangible assets 25,628 24,837 23,510 --------- --------- --------- 25,731 24,859 23,520 --------- --------- --------- Current assets Stocks 15,297 15,099 14,215 Consignment stocks 5,451 5,831 5,510 Property - - 951 Debtors 8,155 6,460 7,923 Bank balances and cash 63 52 51 --------- --------- --------- 28,966 27,442 28,650 --------- --------- --------- Creditors : amounts falling due within one year Short term borrowings 2,341 1,440 459 Obligations under finance leases - 106 37 Obligations relating to consignment 5,451 5,831 5,510 stock Other 14,942 13,514 14,938 --------- --------- --------- 22,734 20,891 20,944 --------- --------- --------- Net current assets 6,232 6,551 7,706 --------- --------- --------- Total assets less current 31,963 31,410 31,226 liabilities --------- --------- --------- Creditors : amounts falling due after one year Long term borrowings (3,000) (3,000) (3,000) Other (54) (517) (207) --------- --------- --------- (3,054) (3,517) (3,207) --------- --------- --------- Provisions for liabilities and (401) (657) (502) charges --------- --------- --------- Net assets 28,508 27,236 27,517 --------- --------- --------- Capital and reserves Called up share capital 2,677 2,686 2,676 Share premium account 272 167 271 Capital redemption reserve 282 249 282 Revaluation reserve 4,545 4,729 4,545 Profit and loss account 20,732 19,405 19,743 --------- --------- --------- Total shareholders' funds 28,508 27,236 27,517 --------- --------- --------- CAFFYNS PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 30 SEPTEMBER 2003 Half year to Half year to Year to 30 September 30 September 31 March 2003 2002 2003 Â£'000 Â£'000 Â£'000 Cash inflow from operating activities Operating profit 1,716 1,679 3,398 Depreciation 535 494 975 Amortisation of goodwill 17 12 24 (Increase)/decrease in stocks (542) 1,298 2,503 (Increase)/decrease in debtors (197) 1,340 (123) Decrease in creditors (43) (4,432) (3,346) (Decrease)/increase in (101) 90 (71) provisions ---------- ---------- ---------- Net cash inflow from operating 1,385 481 3,360 activities ---------- ---------- ---------- Returns on investments and servicing of finance Interest paid (238) (338) (574) Preference dividends paid (51) (51) (102) ---------- ---------- ---------- (289) (389) (676) ---------- ---------- ---------- Taxation Corporation tax paid (200) - (650) ---------- ---------- ---------- Capital expenditure and financial investment Purchase of tangible fixed (2,026) (389) (931) assets Sale of tangible fixed assets 1,059 - 48 ---------- ---------- ---------- (967) (389) (883) ---------- ---------- ---------- (Acquisitions)/disposals (1,361) 5,163 5,124 ---------- ---------- ---------- Equity dividends paid (403) (348) (549) ---------- ---------- ---------- Cash (outflow)/inflow before (1,835) 4,518 5,726 financing ---------- ---------- ---------- Financing Issue of ordinary shares 2 - 127 Purchase of own shares - (2,389) (2,675) Loan repayments - (4,000) (4,000) Capital element of finance lease (37) (71) (140) ---------- ---------- ---------- Net cash outflow from financing (35) (6,460) (6,688) ---------- ---------- ---------- Decrease in cash (see note 6) (1,870) (1,942) (962) ===== ===== ===== CAFFYNS PLC NOTES TO THE INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2003 1. BASIS OF PREPARATION The directors approved this interim statement on 27 November 2003. The interim accounts for the half year ended 30 September 2003 and the comparative figures for the half year ended 30 September 2002 are unaudited, and have been prepared on the same basis as the accounts for the year ended 31 March 2003. The financial information for the year ended 31 March 2003 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 Half year to Year to 30 September 30 September 31 March 2003 2002 2003 Â£'000 Â£'000 Â£'000 Profit on disposal of businesses - 942 942 Net profit on disposal of tangible - 1,541 1,541 fixed assets Closure and disposal costs - (135) (173) Provision for diminution in value - - (391) of freehold property ---------- ---------- ---------- - 2,348 1,919 ---------- ---------- ---------- 3. TAXATION ON PROFIT ON ORDINARY ACTIVITIES Half year to Half year to Year to 30 September 30 September 31 March 2003 2002 2003 Â£'000 Â£'000 Â£'000 Current UK corporation tax at 30% Charge for the period 321 386 695 Advance corporation tax (114) (104) (266) recovered Over-provision in respect of prior - - 12 years ---------- ---------- ---------- Total corporation tax 207 282 441 Deferred tax at 30% Origination and reversal of timing 15 26 32 differences ---------- ---------- ---------- 222 308 473 ---------- ---------- ---------- 4. DIVIDENDS Ordinary shares of 50p each The interim dividend proposed at the rate of 7.5p per share (2002: 7.0p) is payable on 14 January 2004 to shareholders on the register at the close of business on 12 December 2003. The shares will be marked ex-dividend on 10 December 2003. Preference shares Preference dividends have been paid in October 2003. The next preference dividends are payable in April 2004. 5. EARNINGS PER SHARE The basic and diluted earnings per ordinary share are calculated on the profit after tax and preference dividends and on the weighted average number of ordinary shares as detailed below: Profit after No. of Ordinary Shares tax and preference Basic Diluted dividends Â£'000 '000 '000 30 September 2003 1,205 2,879 2,879 31 March 2003 4,168 2,894 2,894 30 September 2002 3,330 2,899 2,918 6. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT Half year to Half year to Year to 30 September 30 September 31 March 2003 2003 2002 Â£'000 Â£'000 Â£'000 Decrease in cash in the (1,870) (1,942) (962) period Movements in loans - 4,000 4,000 Cash outflow from capital 37 71 140 repayments of finance leases ---------- ---------- ---------- Movement in net debt in the (1,833) 2,129 3,178 period Net debt at beginning of (3,445) (6,623) (6,623) period ---------- ---------- ---------- Net debt at end of period (5,278) (4,494) (3,445) ---------- ---------- ---------- 7. INTERIM STATEMENT The interim statement will be posted to ordinary and preference shareholders by 8 December 2003. Copies will also be available to the public at the registered office of the company at Saffrons Room, Meads Road, Eastbourne, BN20 7DR. INDEPENDENT REVIEW REPORT TO CAFFYNS PLC Introduction We have been instructed by the company to review the financial information for the six months ended 30 September 2003 which comprise the consolidated profit and loss account, the note of historical cost profits and losses, the consolidated balance sheet, consolidated cash flow statement and notes 1 to 7. We have read the other information contained in the interim report which comprises only the Chairman's Statement and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. Our responsibilities do not extend to any other information. This report is made solely to the company, in accordance with guidance contained in APB Bulletin 1999/4 'Review of Interim Financial Information'. Our review work has been undertaken so that we might state to the company those matters we are required to state to it in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusion we have formed. 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 subsequently 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 2003. Grant Thornton Chartered Accountants London 27 November 2003 This information is provided by RNS The company news service from the London Stock Exchange

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