Interim Results

Caffyns PLC
26 November 2004


Interim Results
________________________________________________________________________________
for the half-year ended 30 September 2004

Summary

                                                               2004       2003
                                                              £'000      £'000

Operating profit before exceptional items                     1,983      1,716
Exceptional credit - VAT refund and interest                  3,389          -
Profit on ordinary activities before taxation                 5,216      1,478

                                                                  p          p

Basic earnings per share                                      150.6       41.9
Interim dividend                                                8.0        7.5


Enquiries:

Simon Caffyn
Chief Executive

Mark Harrison
Finance Director

Telephone: [phone]


Chairman's Statement
________________________________________________________________________________

In the six months to 30 September 2004, turnover has increased from £76 million
to £80 million. The operating profit before exceptional items is up at
£1,983,000 against £1,716,000 last year, an improvement of 15%.

The six month period has seen much activity with the amalgamation into the Group
of our business acquisitions coupled with the ongoing refurbishment programme
affecting many sites.

The Vauxhall dealership in Tunbridge Wells, acquired in February this year, is
undergoing major refurbishment. We will later this year open a satellite
Vauxhall site in Tonbridge, enabling us to cover this market area more
effectively and to provide MG Rover vehicles from a shared facility in Tunbridge
Wells.

In June we acquired the Volkswagen dealership covering Brighton and Hove and,
although it has not made a contribution to profits due to the major
reorganisation required, the opportunity for the long term development of the
business is substantial.

In November we acquired the Skoda dealership in Tunbridge Wells, giving us an
even stronger representation in the town as well as complementing our successful
Skoda operation in Ashford.

In the same period we have closed our loss-making business in Burgess Hill. The
Burgess Hill property will be sold and the proceeds from this and the sale of
the two sites closed last year will be used to continue the development of our
key franchise businesses.

In Eastbourne work is progressing well on a new Audi Centre development which is
on schedule to be completed in the spring of next year.

In September HM Customs & Excise agreed our initial claim in respect of VAT
overpaid on demonstrator vehicles in the period 1973 to 1996. The amount agreed
was £1.489 million and interest of £1.9 million and these monies will be used to
reduce borrowings. In common with other motor retailers, an additional claim has
been made to Customs but agreement is withheld pending resolution of a point of
law governing the reclaim of input VAT.

The Financial Services Authority has issued regulations which will affect the
sale and administration of insurance based products from January 2005. We are
taking the necessary steps to comply with the new regulations and the FSA have
indicated that they are minded to approve our application.

The post exceptional pre-tax profit of £5,216,000 will give rise to a tax charge
which may, by the year end, utilise all our surplus ACT therefore in future
years we would not have this tax benefit.

I would like to pay tribute to Ian Watt who retires from the Board at the end of
this month. Since joining the Company in January 1993 Ian has made an
outstanding contribution and I am very grateful to him for his advice over the
years.

Considering the potential disruption of all of the above activities, it is very
pleasing to report an increase in profit before tax and exceptional VAT refunds
to £1.827 million ahead of £1.478 million in 2003. The economy has slowed in the
last quarter but we remain well placed to continue to build on our success.

Your Directors have agreed to an increased interim dividend of 8.00p per
ordinary share amounting to £230,000. This will be paid on 12 January 2005 to
shareholders on the register at 5.00pm on 10 December 2004.

Brian A Carte
Chairman
26 November 2004


Consolidated Profit and Loss Account
___________________________________________________________________________________________________________
for the half-year ended 30 September 2004

                                 Note        Before           VAT   Half-year to   Half-year to    Year to
                                        exceptional   exceptional   30 September   30 September   31 March
                                                VAT                         2004           2003       2004
                                                                           £'000          £'000      £'000
___________________________________________________________________________________________________________

Turnover
Continuing operations                        77,962             -         77,962         76,004    146,017
Acquisitions                                  2,155             -          2,155              -      7,087
___________________________________________________________________________________________________________

                                             80,117             -         80,117         76,004    153,104
___________________________________________________________________________________________________________

Operating profit
Continuing operations                         2,057         1,489          3,546          1,670      3,697
Acquisitions                                    (74)            -            (74)            46        192
___________________________________________________________________________________________________________

Total operating profit                        1,983         1,489          3,472          1,716      3,889
Exceptional items                   2           322             -            322              -       (209)
___________________________________________________________________________________________________________

                                              2,305         1,489          3,794          1,716       3680
Net interest                                   (478)        1,900          1,422           (238)      (571)
___________________________________________________________________________________________________________

Profit on ordinary activities  
before taxation                               1,827         3,389          5,216          1,478      3,109

Taxation                            3          (291)         (538)          (829)          (222)      (471)
___________________________________________________________________________________________________________

Profit on ordinary activities                 
after taxation                                1,536         2,851          4,387          1,256      2,638

Dividends (equity and non-equity)   4          (281)            -           (281)          (267)      (750)
___________________________________________________________________________________________________________

Retained profit                               1,255         2,851          4,106            989      1,888
___________________________________________________________________________________________________________

Earnings per ordinary share         5                                          P              p          p

Basic                                                                      150.6           41.9       88.1
Adjusted                                                                    42.1           42.7       95.5
___________________________________________________________________________________________________________

Dividend per ordinary share                                                  8.0            7.5       22.5
___________________________________________________________________________________________________________

Note of historical cost profits 
and losses                                                                 £'000          £'000      £'000

Reported profit on ordinary 
activities before taxation                                                 5,216          1,478      3,109

The difference between the 
historical cost depreciation 
and depreciation based on
revalued amounts                                                              22              -         45
___________________________________________________________________________________________________________

Historical cost profit on
ordinary activities                                                        
before taxation                                                            5,238          1,478      3,154
___________________________________________________________________________________________________________

Historical cost profit for 
the period retained after
taxation and dividends                                                     4,128            989      1,933
___________________________________________________________________________________________________________



Consolidated Balance Sheet
________________________________________________________________________________
at 30 September 2004
                                          30 September 30 September   31 March
                                                  2004         2003       2004
                                                 £'000        £'000      £'000
________________________________________________________________________________

Fixed assets
Intangible assets                                  363          103        161
Tangible assets                                 29,528       25,628     29,229
________________________________________________________________________________

                                                29,891       25,731     29,390
________________________________________________________________________________
Current assets
Stocks                                          16,696       15,297     16,192
Consignment stocks                               8,720        5,451      5,819
Debtors                                         13,159        8,155      9,860
Bank balances and cash                              54           63         62
________________________________________________________________________________
                                                38,629       28,966     31,933
________________________________________________________________________________

Creditors : amounts falling due within one year
Short term borrowings                            8,252        2,341      8,444
Obligations relating to
consignment stock                                8,720        5,451      5,819
Other                                           14,333       14,942     14,238
________________________________________________________________________________
                                                31,305       22,734     28,501
________________________________________________________________________________
Net current assets                               7,324        6,232      3,432
________________________________________________________________________________
Total assets less current liabilities           37,215       31,963     32,822
________________________________________________________________________________

Creditors : amounts falling due after one year
Long term borrowings                            (3,000)      (3,000)    (3,000)
Other                                             (115)         (54)       (13)
________________________________________________________________________________
                                                (3,115)      (3,054)    (3,013)
________________________________________________________________________________

Provisions for liabilities and charges            (588)        (401)      (403)
________________________________________________________________________________

Net assets                                      33,512       28,508     29,406
________________________________________________________________________________

Capital and reserves
Called up share capital                          2,676        2,676      2,676
Share premium account                              272          272        272
Capital redemption reserve                         282          282        282
Revaluation reserve                              4,239        4,545      4,500
Profit and loss account                         26,043       20,733     21,676
________________________________________________________________________________
Total shareholder's funds                       33,512       28,508     29,406
________________________________________________________________________________


Consolidated Cash Flow Statement
________________________________________________________________________________
for the half-year ended 30 September 2004

                                        Half-year to   Half-year to    Year to
                                        30 September   30 September   31 March
                                                2004           2003       2004
                                               £'000          £'000      £'000
________________________________________________________________________________

Cash inflow from operating actitivies
Operating profit                               3,472          1,716      3,889
Depreciation                                     518            535        995
Amortisation of goodwill                          49             17         34
Exceptional VAT                               (1,489)             -          -
Increase in stocks                            (3,219)          (542)    (1,119)
Decrease/(increase) in debtors                    90           (197)    (1,937)
Increase/(decrease) in creditors               2,685            (43)      (663)
Decrease in provisions                           (82)          (101)      (170)
________________________________________________________________________________
Net cash inflow from operating activities      2,024          1,385      1,029
________________________________________________________________________________

Returns on investments and servicing of finance
Interest paid                                   (478)          (238)      (571)
Preference dividends paid                        (51)           (51)      (102)
________________________________________________________________________________
                                                (529)          (289)      (673)
________________________________________________________________________________

Taxation
Corporation tax paid (net)                       (96)          (200)      (400)
________________________________________________________________________________

Capital expenditure and financial investment
Purchase of tangible fixed assets             (1,000)        (2,026)    (3,814)
Sale of property in current assets                 -              -        951
Sale of tangible fixed assets                    807          1,059        167
________________________________________________________________________________
                                                (193)          (967)     (2696)
________________________________________________________________________________

(Acquisitions)/disposals                        (703)        (1,361)    (4,579)
________________________________________________________________________________
Equity dividends paid                           (432)          (403)      (619)
________________________________________________________________________________
Cash inflow/(outflow) before financing            71         (1,835)    (7,938)
________________________________________________________________________________

Financing
Issue of ordinary shares                           -              2          1
Capital element of finance lease                 113            (37)       (37)
________________________________________________________________________________
Net cash inflow/(outflow) from financing         113            (35)       (36)
________________________________________________________________________________
Increase/(decrease) in cash (see note 6)         184         (1,870)    (7,974)
________________________________________________________________________________


Notes to the Interim Results
________________________________________________________________________________
for the half-year ended 30 September 2004
     
1.   Basis of preparation

     The directors approved this interim statement on 26 November 2004.

     The interim accounts for the half-year ended 30 September 2004 and the
     comparative figures for the half-year ended 30 September 2003 are 
     unaudited, and have been prepared on the same basis as the accounts for the 
     year ended 31 March 2004.

     The financial information for the year ended 31 March 2004 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 auditor's 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
                                         2004            2003           2004
                                        £'000           £'000          £'000

     Net profit on disposal of                 
     tangible fixed assets                499               -             22

     Closure and disposal costs          (177)              -           (231)
                                 _______________________________________________
                                          322               -           (209)
                                 _______________________________________________
     
3.   Taxation

                                 Half-year to    Half-year to        Year to
                                 30 September    30 September       31 March
                                         2004            2003           2004
                                        £'000           £'000          £'000

     Current UK corporation tax at 30%

     Charge for the period              1,363             321            820

     Advance corporation tax recovered   (801)           (114)          (367)
     
     Over-provision in respect
     of prior years                         -               -            (53)
                                 _______________________________________________
     Total corporation tax                562             207            400

     Deferred tax at 30%

     Origination and reversal
     of timing differences                267              15          71
                                 _______________________________________________
                                          829             222         471
                                 _______________________________________________
     
4.   Dividends

     Ordinary shares of 50p each

     The interim dividend proposed at the rate of 8.0p per share (2003 : 7.5p) 
     is payable on 12 January 2005 to shareholders on the register at the close 
     of business on 10 December 2004. The shares will be marked ex-dividend on 8
     December 2004.

     Preference shares

     Preference dividends have been paid in October 2004. The next preference
     dividends are payable in April 2005.
     
5.   Earnings per share

     Basic                    Half-year to         Half-year to        Year to
                              30 September         30 September       31 March
                                      2004                 2003           2004
                                     £'000                £'000          £'000

     Profit before tax               5,216                1,478          3,109
     Taxation                         (829)                (222)          (471)
     Preference dividends              (51)                 (51)          (102)
                                 _______________________________________________
     Earnings                        4,336                1,205          2,536
                                 _______________________________________________
     Basic earnings per share        150.6p                41.9p          88.1p
                                 _______________________________________________
     Adjusted

     Profit before tax               5,216                1,478          3,109
     Adjustments:
     Goodwill amortisation              49                   23             34
     Exceptional items (note 2)       (322)                   -            209
     Exceptional item - VAT         (3,389)                   -              -
                                 _______________________________________________

     Adjusted profit before tax      1,554                1,501          3,352
     Taxation                         (291)                (222)          (501)
     Preference dividends              (51)                 (51)          (102)
                                 _______________________________________________
     Earnings                        1,212                1,228          2,749
                                 _______________________________________________
     Adjusted earnings per share      42.1p                42.7p          95.5p
                                 _______________________________________________

     The weighted average number of ordinary shares in issue during each period 
     was 2,879,298.
     
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
                                       2004                2003           2004
                                      £'000               £'000          £'000

     Increase/(decrease) in
     cash in the period                 184              (1,870)        (7,974)

     Net cash (inflow)/outflow
     from finance leases               (113)                 37             37
                                 _______________________________________________

     Movement in net debt in 
     the period                          71              (1,833)        (7,937)

     Net debt at beginning of 
     period                         (11,382)             (3,445)        (3,445)
                                 _______________________________________________
     Net debt at end of period      (11,311)             (5,278)       (11,382)
                                 _______________________________________________

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 2004 which comprise the consolidated profit
and loss account, the note of historical cost profits and losses, the
consolidated balance sheet, the consolidated cash flow statement and notes 1 to
6. 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 purposes. 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 Service 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 2004.

Grant Thornton UK LLP
Chartered Accountants
London
26 November 2004


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