Car retailer Marshall Motor Holdings said profits doubled over the course of 2017, pleasing investors with a 16 percent dividend increase.

The groups’s strong results were largely due to the sale of its leasing business as well as a hike in revenue, despite recording lower like-for-like new and used car unit sales.

Pre-tax profit rose to £53.1 million, up from £22.2 million the year before, with revenue rising by 19.5 percent to hit £2.27 billion. Underlying pre-tax profit increased by 14.4 percent as gross profit margin expanded by eight basis points to 11.7 percent.

The company declared a dividend for the full year of 6.4p per share, up 16.4 percent on-year.

“Despite the more challenging market backdrop, the board is pleased to announce another record financial performance which was ahead of our previously upgraded expectations,’ chief executive Daksh Gupta said.

“During 2017 we took a number steps, including the strategic disposal of Marshall Leasing, to prepare the group for the future.

“We are now focused exclusively on our motor retail business and with a significantly strengthened balance sheet remain ideally positioned to exploit future opportunities.”

The company warned on the state of the car market going forward, with Gupta drawing on the latest forecast from the Society of Motor Manufacturers and Traders UK which warned of a decline of 5.6 percent in the new vehicle market for 2018.

However, Gupta said trading performance in the current financial year to date is “in line with our expectations and our outlook for the full year remains unchanged.”

Shares in Marshall Motors (LON:MMH) are currently trading up 3.89 percent at 173.50 (0944GMT).