However, the accounts also reveal that the firm’s turnover also increased by 11% to £824m for the year ending December 31 2018.

The losses arrive after a series of major investments were made into the company in its Dundee stores.

John Clark opened a new Jaguar Land Rover dealership in Dundee in 2018 and acquired the Volvo franchise from Barnetts.

The firm also embarked on refurbishing its Skoda and Seat dealerships in the city, which were finished earlier in 2019.

The Courier reported that Christopher Clark, group managing director, said “marketplace challenges caused by economic and political uncertainty” had led to reduced consumer confidence.

He added: “Whilst pleased to again report growth in turnover, our operating margins came under sustained pressure, despite our expanded aftersales operation again delivering improved results.

“Our 2018 trading performance saw some exceptional challenges which were not within the group’s control. These included vehicle stock supply shortages our Volkswagen Group franchise suffered in the later months of 2018.

“The results of our BMW franchise also deteriorated, with similar profits decline and vehicle stock pressures said to have been seen across their dealer network.”

The company’s accounts revealed that the sales of new vehicles outperformed the market, growing at 3%, 14,067 units, at a time when new car registrations decreased by 8% across Scotland.

During 2018, John Clark also sold its loss-making franchises in Dundee and Perth to Eastern Western.

Earlier in 2019, the firm’s aftersales workshop in Dundee was expanded by relocating the accident repair centre to stand-alone premises.

Mr Clark continued: “Management team focus remains high on customer satisfaction, operating cost levels and working capital controls. Plans are being progressed for the 2020 relocation of our BMW and Volvo business in Dundee as well as Volvo in Edinburgh.”

Across John Clark, the staff headcount increased from 1,262 in 2017 to 1,396 in 2018, with 136 in a managerial capacity, 126 in administration, 362 in sales, with 772 holding other roles, including an increased number of apprentices.

Mr Clark added that the group’s working capital position was “healthy”.