CAR dealer Halliwell Jones drove back into profit despite a sharp fall in new car sales.

The group operates three combined BMW and Mini dealerships, in Southport, Warrington and Llandudno Junction, as well as separate franchises in Chester. It made a pre-tax profit of £564,000 in 2009, following a £344,000 loss a year earlier.

Phillip Jones, managing director of Halliwell Jones, believes the results, which showed a 4.6% increase in sales to £35.8m, represented “a satisfactory performance”. However, the number of new BMWs sold was down 17% and sales of new Minis fell 24%.

Mr Jones said: “This reflected a difficult new car market, although the impact of this was countered by enhanced manufacturer support.

“The franchised motor dealership industry saw a significant increase in margins on used car sales in 2009, which followed a marked fall in stock values in the latter half of 2008. This was the main factor in the overall improvement in profitability during 2009.”

A cut in staff numbers, by seven to 48, reduced costs, although a £140,000 pay rise for Mr Jones, to £440,000, meant the group’s wage bill increased slightly to £1.79m.

Interest payments fell by nearly three- quarters to £57,000 because of low interest rates and a reduction in net debt. The group had cleared its £674,000 overdraft by the end of 2009.

Halliwell Jones holds the franchises until September, 2013, when the UK dealer network is up for renewal.

The group uses sporting partnerships to raise its profile, including having the naming rights for Warrington Wolves’ Halliwell Jones Stadium, and last November signed a deal to be Liverpool FC’s official supplier.

ALEX TURNER