Sales have risen 16% and pre-tax profit has grown by 34% as operational efficiencies continue to develop south of England dealer group Caffyns.

Revenue increased to £103.8m in the six months to October 1, while profit before tax rose to £917,000.

Operating profit grew marginally to £1.34m.

Improvements have been made across the business. Against a declining national market Caffyns’ new car volumes rose by 4.5%, with margins strengthening at its premium and premium-volume franchises.

Used car volumes also rose by 6.6%, although margins have fallen, and added emphasis on CRM has helped lift aftersales revenue by 4.4%.

Simon Caffyn, chief executive, said: “We achieved these higher levels in what remain uncertain market conditions for car sales, and future visibility is limited.

"Our objective is to build on the first half's performance by continuing to focus on the efficient running of the group's operations.

"However, the effects of the Government Spending Review and the VAT increase in January could impact consumer confidence and thus car sales in the second half."