Insider Media Limited

Worcestershire-based Auto-Sleepers Group has boosted its turnover by almost 12 per cent in a "difficult" market, which has been flat over the year, according to the latest accounts.

The motor home manufacturer and retailer continued to invest almost 1 per cent of revenue in new product development and assets to support the long-term profitability of the business.

Asset additions of more than £1.1m were made from the company's own resources in the year to 31 August 2011.

Turnover at the group, which employs 283 staff, increased from £64.6m in 2010 to £72.3m last year as it improved market share, with pre-tax profit slipping slightly from £2.1m to £1.8m.

However, operating profit rose 44 per cent to £1.6m excluding negative goodwill, up from £1.1m the previous year.

The group's order book remained in line with directors' expectations.

"We continue to improve our financial performance in a difficult market, and the directors wish to thanks all the employees and business partners for assisting in this process," the accounts said.

Auto-Sleepers' working capital requirements are met using its own resources, as well as relying on finance providers for retail stock funding of new vehicles.

"The current economic climate creates uncertainty over the level of demand for the group's products and stock financing," the directors' report added.

"The projections and forecasts show the group should be able to operate within its own resources for the foreseeable future."

Policies have been implemented that require appropriate credit card checks on customers or full payment before delivery to manage credit-related risks.