Car dealer Lookers has recorded another year of record results thanks to buoyant sales.

The company also demonstrated a pragmatic approach to business, closing a Jeep and Seat dealership in Middlesbrough that was underperforming.

Overall, Lookers said it had been encouraged by a strong order book for the new registration period this month and EU rules freeing up the car market.

Optimism has also been fuelled by industry forecasts that this year will be the third highest year for car sales, with more than 2.5 million vehicles leaving dealers' forecourts. It presently has more than 60 dealerships selling vehicles made by manufacturers that include Renault, Vauxhall and Volkswagen.

Announcing results for the 12 months to December 31, Lookers said profits were 19 per cent ahead of a year ago at £14m, while turnover grew 22 per cent to £961m.

Chairman Fred Maguire described the performance as robust and said the group benefited from the reduced cost of car finance, low interest rates and the introduction of new models.

But profits would have been up to £700,000 higher had changes to EU rules not forced Lookers to buy two dealerships in Northern Ireland during the final quarter - a traditionally loss-making period for the motor industry.

The new regulations on block exemptions came into effect in October, giving larger dealers a stronger hand in negotiations with manufacturers.

Lookers responded by strengthening ties with selected partners while closing underperforming sites, including its parts and bodyshop operation at Stockport and the Teesside dealership.

The closures have released £3m for re-investment, which is expected to have a positive effect on future profits.