Trading Statement

RNS Number:1331L
Caffyns PLC
15 April 2005



Caffyns plc ("the Company")


Statement - MG Rover


Following the appointment of administrators to MG Rover Group Limited ("MG
Rover"), the Board considers that an exceptional charge will need to be made in
the Company's financial statements for the year ended 31 March 2005.


The Company trades from eight locations with this franchise. Turnover generated
from MG Rover dealerships of the Company in the six months ended 30 September
2004 was #15.8m and operating profit was #355,000. At 31 March 2005, the Company
had stocks of MG Rover new and used vehicles amounting to approximately #3.6m
(including #1.5m consignment stock) representing 16% of the Company's total
vehicle stock.

The branch in Tunbridge Wells will continue to operate under the Vauxhall
franchise which is already in place at these premises. The MG Rover branches in
Eastbourne, Brighton and Worthing are in the process of being re-franchised. The
branches in Lewes and Uckfield will continue to trade as used car and
after-sales operations.

The alternatives available to the Company with regard to the dealerships in
Seaford and Ramsgate are currently being considered.

The Company was owed #54,000 by MG Rover at 31 March 2005. In addition, further
exceptional charges may be required against the value of the Company's vehicle
stocks noted above, as well as warranty obligations which may no longer be
funded by MG Rover. The full costs of the provisions necessary are likely to
have become clear by the time the preliminary announcement of the Company's
results for the year ended 31 March 2005 is made on 27 May 2005.

Simon Caffyn, Chief Executive of Caffyns said:

"Since the mid 1990's, in line with MG Rover's declining market share, we have
taken action to reduce our exposure from 21 MG Rover dealerships to eight.
Similarly, we have in recent months taken steps to reduce our exposure to MG
Rover vehicle stocks. We have priced our stock attractively and demand for these
vehicles is strong.

Whilst there will be some disruption, our actions over the last few years and
our swift response to the current situation has ensured that this is kept to a
minimum. Our move away from MG Rover and our increasing representation of strong
and successful franchises, will improve the core structure of the Company in
line with our strategic plan."

For further information:

Simon Caffyn, Chief Executive, Caffyns plc
Mark Harrison, Finance Director, Caffyns plc
01323 730201







                      This information is provided by RNS
            The company news service from the London Stock Exchange

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