Car dealership Pendragon said increased efficiencies from the acquisition of North Yorkshire-based rival CD Bramall helped it overcome a tough market to post a 19 per cent hike in first-half profits.

The Nottingham-based group said the company-transforming purchase of rival CD Bramall last year helped it combat a 5.8 per cent fall in UK car registrations.

Pendragon, which has 236 franchises in the UK, also said its wide range of brands and services contributed to underlying pre-tax profits rising to £36.8m in the six months to June 30.

Chief executive Trevor Finn said: "Current trading remains in line with expectations as we continue to absorb the effects of the downturn in the UK new car market with minimal impact on profits."

The group said it had continued to focus on achieving efficiencies from the integration of Harrogate-based CD Bramall, which nearly doubled its size. Since the acquisition in March last year, CD Bramall operations have been reorganised and integrated into Pendragon. Functions such as payroll, group accounts and property management have been transferred to its Nottingham headquarters.

Pendragon said profits continued to be difficult to generate compared with the strong levels seen last year.

Group sales increased by £152.8m to £1.75bn, mainly due to the two extra months of trading from CD Bramall compared with last year.