However, this was offset by a 10.8% decline in used car sales and margin, which he said had been temporarily impacted by structural changes to the Ford and Vauxhall parts of the group – it has terminated its Vauxhall businesses.

In aftersales, the group reported a 4.2% decline in like for like revenues as the reduction in the 0-5 year car parc continues and fewer used car sales led to less internal work.

To counter the fall, Caffyns has enhanced its marketing and customer retention procedures, its chief executive said.

He added: “While trading conditions remained very difficult during the period, action has been and continues to be taken to improve our internal efficiencies and to position the company for the next upturn.”

He said the restructuring had produced a stronger core business with higher-quality, more concentrated businesses and a strong balance sheet.

Looking forward, Caffyn said the enlarged Lewes Land Rover dealership was now operating, and the company was in advanced negotiations to buy a large site in Worthing to rehome its expanding Volkswagen dealership.

Its other VW dealerships are undergoing refurbishment to the new VW CI standards, and Caffyn sees growth opportunities ahead for its Skoda and Audi businesses.

A Seat franchise will also be added alongside Skoda Tunbridge Wells in the future.

The company also has a further four freehold properties for sale, in addition to a Sevenoaks site sold for £1.75m in 2011 and a Brighton property sold for £2.7m in February 2012.

The £1.81m sale of another property in Alton is due for completion in November if a planning application is accepted.