Caffyns went into the red for the half year to 30 September with losses of £934,000 compared to profits of £213,000 in the prior year on turnover down 3% to £133.9m.
Retail new car deliveries fell by 14% year-on-year. Caffyns said many of its brands performed behind the UK market and it had made operational changes with more planned to address the issue.
Used car sales volumes fell by 1% year on year but it said innovations in sourcing used cars improved margins, offsetting the lower volumes.
Aftersales revenues rose by 7% in the period despite technician recruitment difficulties and adversely affecting throughput levels.
Like all dealers, it experienced higher costs, including £500,000 from hikes in Employer national insurance and national minimum wage,which came into effect in April this year
In June 2025, it shut its Lotus business in Lewes, consolidating it in its Ashford Lotus facility.
Simon Caffyn, chief executive, said: “The motor retail market was particularly challenging in the half year to 30 September.
“We have responded by making a number of operational changes to improve performance.”
Caffyns operates from 20 dealerships across Sussex and Kent. Established over 150 years ago, the company entered the motor industry in 1903.
