Car retailer sees profits accelerate

Car retailer Reg Vardy has announced a rise in its annual profits to £32.6m, from £24.3m last time.

The company said it had had its most successful year of trading on record with profits at an all time high.

It said that low inflation and low interest rates in the UK had helped consumers' disposable income and lower car prices had stimulated growth in sales.

And the firm added that it planned more acquisitions to help it meet its target of £2bn turnover.

Reg Vardy also said it believed that action by the European Commission to increase competition in the car retail market would benefit the company.

The commission is proposing a system under which car dealers can sell more than one brand of cars, as long as they are kept separate on a dealer's premises.

Reg Vardy shares stood 6p higher at 379.5p in morning trade on Wednesday.