Car dealerships in financial trouble
The group's share value fell 15% on the announcement, as it warned profits for 2008 would be 'not less than £10 million', down from £24.5 million last year.
Rivals Pendragon and Inchcape have also issued profits warnings recently.
DC Cook Direct
Meanwhile, another car dealership group, DC Cook Direct, has started liquidation proceedings.
A statement read: 'Please note that with effect from 19th December 2008 Changing Gear Ltd trading as DC Cook Direct has ceased to trade. The Directors have commenced liquidation proceedings.
'If you believe that you are owed any money by the company, but have not received notification by Tuesday 23 December 2008 please contact the offices of Tenon Recovery on 01924 241030'.