Stockbroker Brewin Dolphin predicted the group would post profit before tax and exceptionals of just £22.4m this year – a 35 per cent fall on 2007's figure and less than half the £50m target set by Pendragon.

But David Forsyth, finance director of the £5bn turnover group, told Motor Trader: “There are half a dozen analysts out there, they all have different agendas. The consensus is that we'll take £20m more in 2008 than we did in 2007.”

Forsyth said Pendragon had sustained one-off losses of £10m in 2007 from its planned closure of under performing dealerships, which would not recur in 2008. The group has shed 21 of the 26 sites earmarked for disposal in April last year. “So we're starting £10m ahead,” Forsyth said, “we only need another £10m.” (to reach the £50m target). Pendragon is also confident the 19 dealerships it bought from the administrator of Dixon Motors in August would start to bring in a positive return in 2008 after running at a loss last year.