Scottish dealer Ian H Cameron said it is happy with its financial results and the company well-placed to exploit next year's market despite a 22% pre-tax profit fall in its latest results.
Ian H Cameron, which owns Perth-based Strathmore Motors, saw the fall in the year to May 31, to £311,000 from £401,000.
Sales also fell 3% during the year, to £13 million from £13.4m.
The company said that although car sales had been affected by the downturn, other departments had traded in-line with the previous year.
The company, which began retailing new Volvos in 1958, making it the longest established Volvo retailer in the UK.
Directors said the firm, owned by Douglas Cameron, had enjoyed another successful year, in spite of trading conditions.
The annual report said: "The company retains an exceptionally strong balance sheet, being substantially cash-positive and having net current assets of £2,406,797."
The company said it paid £100,000 of interim dividends in the year to May, in line with the preceding year. Directors' remuneration totalled £95,500 in the year to May and in the preceding year.
The average number of employees during the latest year was 33, up from 32.