Colonial Motor Company expects a decrease in trading profit before tax of about 20% for the six months to December 31, 2023.
The company, which is the parent of the Ford and Honda dealerships, cited a tough trading environment in a flat market and economy as the reason for the decline.
It said the new vehicle market was oversupplied and over-competitive, leading some competitors to sell vehicles at lower prices to maintain cash flow.
While December was a strong trading month, the company said it was too early to determine if it was a sign of market recovery.
Dealerships continued to focus on cost management in light of the "new normal" in market volume.
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