A businessman could lose his home and his business after he built and sold an amphibious car condemned by a judge as a "floating coffin".

Tim Dutton, 59, of Park Crescent, Worthing, could lose everything as well as being sent to jail if a judge orders him to pay compensation to the man he sold the car to.

Judge Paul Batty QC ordered Dutton's lawyers to get valuations on his flat, his Littlehampton factory and his engineering equipment so he could decide how much compensation he should pay to Windermere businessman Adrian Cowdroy, who bought the car.

The vehicle, a specially converted long wheelbase Suzuki Jimny - was condemned as unroadworthy in a series of land-based inspections. It was refused a licence to be used on the lake when inspectors found it was not watertight.

Dutton is also facing a possible prison sentence after being found guilty at Carlisle Crown Court in Cumbria of breaking fair trading laws by selling the vehicle.

The judge, who previously described Dutton as "glib and dishonest", was due to pass sentence on him today but refused because he said he did not know enough about his financial affairs.