THE owners of the Mills Garages chain of car dealerships have up to £36m available for acquisitions and are eyeing a number of deals.

European Motor Holdings (EMH) is believed to be on the verge of acquiring dealerships in the North-East, although chief executive Richard Palmer remained tight-lipped yesterday.

As the group unveiled record profits of £15.8m, earnings per share rose by 65 per cent to 38.2p.

Mr Palmer said two showrooms in Durham, selling BMWs and Minis, would be open by July with the creation of 40 jobs.

And he reinforced a commitment to the North-East, saying it was one of EMH's strongest areas.

The group, which also owns a Bentley operation in Newcastle, employs more than 500 people across the region and also has operations in the North-West, South-East and West Country.

Mr Palmer said: "I look at the North-East as one of the key areas of the country for the group."

He added: "We look at any opportunity to expand in the North-East and are looking at things all the time, but I can't be more specific than that."

The new Durham showrooms are to complement BMW and Mini operations in York and Malton, in North Yorkshire, through to Stockton and Sunderland.