Car dealership Inchcape posted record profits yesterday as the group outperformed a “very challenging” UK market.

Despite fears of a slowdown, the firm boosted underlying pre-tax profits 10 per cent to £235.1 million in 2007, beating forecasts.

Like-for-like sales across the group, which sells marques including Audi, BMW, and Mercedes-Benz, rose 3.4 per cent.

UK revenues jumped 58 per cent after acquisitions, although comparative sales were also 5.2 per cent higher than last year.

Inchcape has fared better than rivals as it is less exposed to the UK market, where margins on used cars have been tighter.