Caffyns has posted record turnover in the year to March 31 of £160m, up £20m on the previous 12 months. Profits also increased - from £1.1m to £2.78m. The group, which has 13 dealerships in the South-east, intends to continue its acquisition strategy with “strong franchises” like VW, Peugeot, Volvo and Audi.

It has sold two Mercedes-Benz dealerships after DaimlerChrysler UK terminated the dealer network in favour of a market area strategy with fewer partners, a decision described as “a disappointment.,p> Simon Caffyn, group chief executive, says: “We are finalising the arrangements with the incoming dealer. A substantial cash inflow in the region of £5m will result, enabling us to continue to invest in our more profitable franchises.”

The results effectively move Caffyns up from 46th in the latest AM100 to 40th.