CAR retailer Perry Group, which operates a Peugeot dealership in Blackburn, has warned of difficult trading conditions.
The firm said the new car market was still buoyant but margins had been hit by tough competition.
Meanwhile, used car sales had been weaker, with some potential customers tempted by special offers on new vehicles.
Pre-tax profits in the six months to June 30 improved fractionally from £4.86 million to £4.91 million with turnover growing from £259.7 million to £269.9 million.
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