Home credit sales exceeded expectations in December and trading and profitability for this period was 'very satisfactory'.

Year-on-year sales at Advantage, the motor finance business which accounts for around 30% of group revenues, were buoyant in both December and January.

Advantage's extension of its product range into non-prime as well as sub-prime markets had been successful, with margins being maintained and the initial net cash return looking promising.

As a result, the group anticipated a resumption in transaction growth next year as both the used car market and the economy return to growth.

Group borrowings have reduced by £5m since the end of last year despite seasonal funding requirements. As a result the group has significant funds available for expansion.

In view of the government's tax increases from April and the group's strong treasury position, it has declared a second interim dividend of 15p per ordinary share. It expects to recommend a final dividend of not less than 8p for the year ending January 31.