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Motor retailer Pendragon has recorded a rise in profits of £13m despite turnover falling by £109m.

The Nottingham company benefited from a boost in its used car sales, as well as lower interest costs as a result of lower average debt following a £75m rights issue.

For the year ended 31 December 2011, pre-tax profits reached £24m, up from £11m in the previous 12 months.

However, turnover fell to £3.46bn, compared with £3.57bn in 2010, as new vehicle sales declined.

Group like-for-like turnover, excluding support businesses, increased by £20m, which reflected improvements in used vehicle volume performance, the company said.

Used vehicle volumes grew by 14.4 per cent on a like-for-like basis.

Chief executive Trevor Finn said: "The group has benefited from strong focus on maximising returns and the success of its self-help initiatives within its three key business sectors: aftersales, used and new.

"Encouragingly, used car performance continues to be a high point for the group and will remain a key strategic area in 2012. Our internet presence with Evanshalshaw.com and Stratstone.com is an important differentiator for Pendragon in the market and has driven our strong aftersales, used and new performance."

Pendragon, whose Stratstone dealerships sell brands including Maserati and Mercedes-Benz, raised more than £75m through a discounted rights issue to reduce its debt in July.

It also secured revised debt facilities of £360m, with a maturity date of 30 June 2014.

"The group has significantly strengthened its financial position since the half year and the rights issue and refinancing has generated a reduced interest cost as a result of lower average debt and improved terms," Finn added.

A pension deficit reduction plan was also implemented, which is estimated to make cash-flow savings of £46m in the three-year period to December 2014.

Net borrowings were £246.8m at the year end – £78.7m lower than a year ago.

"The year ahead is set to be challenging, but given our recapitalised balance sheet, healthy cash generation, clear strategic goals and robust operational management we expect to maintain our momentum into 2012," Finn said.