News

Upmarket car dealer HR Owen saw profits leapt 28% in the first half of 2008 despite the economic slowdown and expects to remain profitable in the second half.

"The group's concentration on ultra luxury saloons and super sports car franchises protected the results to a degree from the real market conditions as our new car business has, and continues to be, able to rely on a number of forward orders," said chairman John MacArthur.

The firm, which sells Bentleys, Ferraris, Maseratis and Rolls-Royces, reported a pre-tax profit of £1.83m for the six months to 30 June, up from £1.43m a year earlier. Revenue rose 1% to £95.91m.

In recent years, the group has reduced its exposure to the volume brands. It still runs Alfa Romeo and Volvo franchises, but the last two Volvo dealerships are due to be sold to management in the near future.

A major de-stocking exercise for used vehicles implemented in January also proved to be a good decision, it said, with used car activity at the top end of the market affected by the economic downturn.

"The board remains confident that its strategy of downsizing to a smaller and more focused specialist car group has greatly improved the prospects for the group and, in combination with our strong balance sheet, remains a good defensive action against the prevailing market conditions," said MacArthur.

But he did warn that both new and used car sales will continue to fall until more stability is experienced in the market.

Bosses have declared an interim payout of 2p a share and expect the group to continue paying dividends.