About 40 jobs are expected to be created in Durham as the owner of the Mills Garages chain builds two new showrooms.

European Motor Holdings (EMH) said it planned to sell BMWs and Minis at the two sites, which are part of continued expansion in the North-East.

Announcing its results yesterday, EMH chief executive Richard Palmer said September had been the group's best ever month in terms of car sales.

He told The Northern Echo: "Rising interest rates have not had an effect on our business." EMH unveiled record results for the six months to the end of August, with profits before tax up 23 per cent to £8.2m.