Caffyns has reported a decline across its business segments since October.

The south of England motor retailer issued an interim management statement which showed new car volumes declined 1.4%, used car volumes dropped 11.7% and aftersales turnover also fell 3.6%.

However it told stakeholders its Land Rover dealership in Lewes is now returning to normal trading following the opening of its new showroom, and it is expanding its Skoda business in Ashford as planned.

And it has completed the sale of a property in Brighton for £2.7m, making a net gain of £2.0m, which will be used to reduce Caffyns debts.

"Trading conditions remain challenging but, following our substantial restructuring, we are well placed to take advantage of any upturn in the economy. Our strong balance sheet enables us to consider acquisitions should suitably attractive opportunities arise," said the company.