The Edinburgh company admitted 2012 had been a "disappointing" year as it disposed of dealerships in Kemnay, near Aberdeen, and Glasgow to Arnold Clark. It also got rid of an accident repair centre in Perth following the loss of an exclusive contract with Direct Line.
Turnover at the company, which trades under the Belmont and the Murray Motor Company brands, declined less than 1% from £85.8m to £85.3m.
Writing in the accounts, the directors said John Martin Holdings is trading profitably in 2013.
Managing director Gordon Nisbet said: "It was pretty painful [in 2012] as we had to take a lot of difficult decisions and cut overheads dramatically.
"We have reorganised to a level which we believe is quite acceptable and we can push on.
"We have made the difficult decisions, have got through it and are now moving forward.
"This year will be a year of consolidation and then we will kick on again [in 2014] focusing on the places we have."
The company has accident repair centres in Aberdeen and Bonnyrigg with dealerships in Selkirk, Wallyford, East Lothian, and in the Sighthill area of Edinburgh.
Its vehicle brands include Kia, Suzuki, Chrysler Jeep, Volvo, Chevrolet, Aston Martin, Rolls Royce and Lotus.
The 2012 accounts show average staff numbers went down from 392 to 359 with employee costs dropping from £11.1m to £10.4m.
Directors' remuneration fell from £536,000 to £498,000 with the highest paid receiving £142,000, down from £160,000.
Net debt fell from £4.4m to £3.9m.