LONDON (ShareCast) - Caffyns’s profits surged in the first half as the UK new and used car dealer achieved higher like-for-like sales.

Underlying pre-tax profit jumped 134% to £1.02m in the six months through September, compared to £439,000 in the previous year. New and used car sales gained 17.6% and 20.8% on a like-for-like basis, respectively.

The company generated net cash from operating activities of £1.83m, up from an outflow of £1.03m last year. Underlying earnings per share increased to 33.5p from 13.4p.

The group raised its dividend to 6p per share from 5p.

The firm said it benefited from an overall improvement in the UK car market. Total UK new car registrations rose by 12.6% during the half year.

“Currently, the UK Market is more buoyant than in other parts of Europe and, while our new car order book is ahead of the same time last year, the outcome for the full year will be dependent on the crucial month of March 2014,” said Chief Executive, Simon Caffyn.

Shares rose 2.33% to 550p at 10:53 on Monday.

RD

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