Caffyns PLC

Caffyns PLC maintains a liquidity position with a current ratio of 1.08, indicating a marginal ability to cover short-term liabilities with current assets. The company's liquidity_fpt score suggests a medium liquidity risk, with negative net cash after subtracting total debt, signaling potential short-term financial strain [doc:HA-latest]. The debt-to-equity ratio of 0.81 reflects a moderate leverage position, with long-term debt of £24.1 million against total equity of £29.9 million [doc:HA-latest]. Profitability metrics show a return on equity (ROE) of 0.59% and a return on assets (ROA) of 0.17%, both below the industry median for car dealers in the UK. The net income of £176,000 on £275.5 million in revenue indicates a very thin margin, with a net margin of 0.06%. This is significantly lower than the industry's median net margin of 2.5% [doc:HA-latest]. The company's revenue is concentrated across five key brand segments: Audi, Volkswagen, Volvo, MG, and Vauxhall. No geographic diversification is disclosed, with all 20 locations concentrated in Sussex and Kent. This geographic concentration increases exposure to regional economic shifts and local demand fluctuations [doc:HA-latest]. Outlook data indicates a modest revenue growth trajectory, with a projected increase of 2.3% in the current fiscal year and 1.8% in the following year. This growth is driven by the expansion of electric and hybrid vehicle offerings under brands like Audi, Volkswagen, and Volvo. However, the company's operating cash flow remains negative at £303,000, which could constrain reinvestment and capital expenditure [doc:HA-latest]. Risk factors include a medium liquidity risk due to negative net cash and a low dilution risk, with no near-term pressure from share issuance. The company has not disclosed any recent ATM or shelf registration activity, and no dilution adjustments are applied in the valuation snapshot [doc:HA-latest]. The risk assessment composite score reflects these factors, with a focus on liquidity constraints and thin operating margins. Recent filings and transcripts do not disclose any material events or strategic shifts. The company's 2023 annual report highlights a focus on expanding its electric vehicle offerings and improving customer service, but no significant capital projects or partnerships are announced [doc:HA-latest].