MOTOR dealer Reg Vardy has warned that full-year results are likely to be at the lower end of market expectations.

The group said motorists had been delaying buying new cars, leading to "subdued" trading in the first three months of the second half compared with the same period a year ago.

The Society of Motor Manufacturers and Traders (SMMT) reported that new vehicle retail registrations in the UK last month were significantly below the previous year's level.

But Reg Vardy said it had performed ahead of the SMMT's figures and had experienced good used car demand.

It repeated that its most important month of the year for profits, March, was still to come.

The group said it expected extra profits relating to property disposals during the rest of this financial year.

But a trading update from the group said: "The board presently anticipates trading results for the full financial year to be towards the lower end of market expectations."

The SMMT said last week that registrations of new cars in the UK in January fell 8.2 per cent to 181,474 units, with diesel registrations up 7.7 per cent to 66,455 units.

The figures confirmed the UK as Europe's second largest market, with 2,567,269 units last year.

Reg Vardy has nearly 100 dealerships across the UK and sells most of the major brands, including specialist marques Aston Martin, Jaguar and Land Rover. It also has a contract hire division that leases cars to companies on 36-month deals.

Dresdner Kleinwort Wasserstein is forecasting pre-tax profits after goodwill, but before property profits, of £36.5m in the year to April.

Analyst Ed Wright said: "January was a fairly important month, but quite a disappointing one."

A Reg Vardy spokesman said the Stockton Jaguar dealership, which had won a sales award from Jaguar, was expanding to meet demands.

Workshop bays are due to be increased, a new wash-and-valet service will be introduced and 30 car parking spaces created.

Alterations will also be made to the dealership's office space. Five staff will also be taken on.