CAR dealer European Motor Holdings (EMH) has reported record results.

The group, which owns the Mills Garages chain, said its profits before tax rose 27 per cent to £16.8m.

Mills Garages, and EMH's Bentley operation, in Newcastle, employ 550 people at 14 dealerships across the region.

It also has operations in the North-West, South-East, and in the West Country.

Turnover last year was up by 14 per cent to £490m.

The new financial year has started well for the group, with a record motor retail performance last month.

Last year, car sales for the group in the UK increased to a record level of 2.58 million.

The sales rise has been attributed to continued low interest rates and new vehicle prices, which have remained low throughout the year.

BMW and Mini operations generated strong performances for the year, with the sales centre in Stockton, which was acquired in February last year, making a significant contribution.

The sale of one business and the relocation of the group's Volvo operations to a new facility in the city centre had an effect on the performance for the year, because of disruption.

Chief executive Richard Palmer said: "We now have excellent representation in our market area in the North-East and expect to make further progress this year."

EMH has acquired land in Durham where it is planning to build a BMW and Mini operation to open early next year, to complement operations in York and Malton, in North Yorkshire, through to Stockton and Sunderland.