LONDON (ShareCast) - Luxury car dealer HR Owen has reported a “good year's trading” in 2007, with profits at record levels, but it did warn that the credit crunch is beginning to affect customers' buying decisions.

Profit before tax from continuing operations for the year to 31 December 2007 jumped to £2.8m from £0.7m in 2006 and to £3.2m excluding exceptional items. Turnover from continuing operations rose 15% to £184m.

It said the results were helped by the strong economy in London and an increased focus on the luxury sector following the sale of the group's volume-orientated franchises.

But there was caution as it added that national market conditions for new and used cars have tightened considerably in the first quarter of 2008, and the effects of the credit crunch have adversely affected customers' buying decisions.

“Some signs are emerging that credit is difficult to obtain for customers in certain sectors of the market,” it said. “Despite this, our new car sales have started strongly, assisted by forward orders for many of our brands.”

The company hopes its strategy to downsize and focus on its luxury brands business will be completed by the fourth quarter of 2008, with the sale of two Volvo dealerships.

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