Caffyns (LSE:CFYN) reported a challenging performance for the year ended 31 March 2026, with revenue declining 2% to £270.7 million as a sharp fall in new vehicle deliveries offset growth in other areas of the business. New-car sales volumes dropped 11% during the period, while used vehicle sales increased 4% and aftersales revenue, including servicing and parts, rose 6%.
Despite resilient demand for aftersales services and a stronger used-car business, profitability was impacted by margin pressures, rising operating costs and weaker new-car trading conditions. As a result, the group recorded an underlying pre-tax loss of £1.5 million and a statutory loss of £1.7 million for the year.
Management has introduced a series of measures aimed at improving performance, including tighter cost controls, enhanced inventory management and a greater focus on sourcing high-quality used vehicles. The company is also seeking opportunities to expand relationships with Chinese automotive brands as it looks to strengthen its franchise portfolio. Despite the loss-making performance, the board maintained its total dividend at 10.0 pence per share, supported by lower net bank borrowings, a reduced defined benefit pension deficit and the strength of its property assets. The decision reflects management’s confidence in the group’s long-term outlook.
The company continues to face a number of financial and operational challenges, including weak profitability and negative cash flow generation. Technical indicators remain broadly bearish, while valuation metrics offer limited support. Although the dividend has been maintained, elevated leverage and recent losses highlight the importance of ongoing operational improvements and strategic execution.
More About Caffyns plc
Caffyns plc is a UK motor retailer operating a network of franchised dealerships across Kent and Sussex. The business generates revenue from both new and used vehicle sales, alongside a significant aftersales operation providing servicing, maintenance and parts.
The company represents a range of established automotive manufacturers as well as emerging Chinese vehicle brands. A key strength of the business is its substantial property portfolio, with ownership of most dealership and office freeholds providing a strong asset base and reducing exposure to rental cost inflation.
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