TC Harrison has highlighted the negative economic effects of the Brexit vote in a set of 2017 annual financial results which show an 8.7% fall in profit before tax.

Following a pattern seen by numerous franchised retail groups, the Derbyshire-based business showed the effects of reduced customer demand and tightening margins with PBT declining from £3.02m to £2.79 in the period to December 31, 2017.

This came despite a 4.3% rise in turnover from £275.8m to £287.7m.

In its annual financial statement, the group stated: “The Brexit vote has introduced a degree of uncertainty into the minds of some of our customers and has resulted in a deferment of major spending decisions by some.

“The squeeze on living standards resulting from the inflationary effect of the fall in sterling following the vote has affected our customers.

“Exchange rate-driven inflation has also pushed up the costs of the business.”

Despite the uncertainty, TC Harrison said that its directors remain confident, adding that the business’ “strong and stable” capital base would mean that it was well placed to adapt to the changing market.

TC Harrison operates Ford franchises in Derby, Huntingdon, St Neots, Peterborough, Burton, Stamford and Spalding, with the dealerships in Derby and Peterborough having recently been upgraded to FordStores.

The business also trades in JCB vehicles across the UK and has an X Lease site in Sheffield.

In its annual statement the group said that it had been able to improve its market share with its Ford franchises and deliver a “modest increase” in the size of its contract hire fleet.