Pendragon got off to a good start in Q1 with underlying profit before tax up 73.1% to £18.7m.
The group looked to increase margins on new cars in the face of supply restrictions and saw gross profit per unit rise 66% to £2,456.
Used vehicles volumes were down 6.7% on a like-for-like basis as supply constraints from lower new car production since 2020 impacted on availability.
Gross profit per unit fell from the heights of H2 last year but Q1 GPU was still up 61.4% to £1,767 compared to Q1 2021.
The group saw a 9.6% increase in like-for-like aftersales gross profit while its software business Pinewood delivered an operating profit of £2.8m (Q1 FY21: £3.4m).
Bill Berman, chief executive of Pendragon, said: “The positive momentum in the business has continued into the first quarter of this year and I am very pleased with how we have performed.
“The benefits of the work we have done in the past two years to improve our operations, from vehicle sourcing through to online and in store sales practices is evident in our strong trading performance and we have seen good contributions from all parts of the group.
“While we are mindful of the pressures facing our market and our customers, we are confident in our strategy and focused on continuing to deliver profitable growth over the medium term.”