North east car dealer Simon Bailes has reported a 5.5% lift in revenue.

The group, which has Peugeot franchises dealerships in Northallerton, Stockton and Guisborough and an accident repair centre in Northallerton, has filed accounts at Companies House showing it grew sales to £45.13m in 2012, up from £42.76m, despite trading during tough economic conditions.

Its new vehicle registrations were up by 7%, outpacing Peugeot's national growth of 4.73%.

The group's used car sales also rose by 3.9%, although aftersales business fell by 9%. Gross margin was maintained at 8.4%.

Net profit of £428,219 was a 37% rise over 2011.

Earlier this year the business, which has adopted Peugeot's Blue Box CI for all its showrooms, became the most accredited Peugeot dealership in the UK having received its 19th Guild of Gold Lion accolade.

The directors' report accompanying the accounts said: “Trading conditions remain challenging due to the weak economy but improvements in the levels of business are becoming evident.

“The directors are very pleased with the overall results in light of the economic conditions and recognise the contribution made from both managers and staff in achieving these results in a very competitive and tough market place.

“Weak economic growth will continue to make trading conditions tough in 2013 but the directors are remaining positive and are working extremely hard with the whole team to ensure that results continue to be maximised.”