Macrae & Dick, founded in 1878, saw its turnover fall from £134.8m to £127.7m in 2011, according to accounts filed at Companies House.

Total retail sales were said to be 0.3% ahead of the previous year, with new car sales showing an increase but used vehicle transactions dropping.

The firm – which has its headquarters in Inverness plus dealerships in Perth, Elgin and Stirling – sells vehicle brands such as Mazda, Ford, Honda, Land Rover, BMW, Mini and Jaguar.

Writing in the accounts, the directors said: "The group continued to increase market share and successfully retain existing customers.

"The balance sheet remains very strong and the directors believe the group is well positioned and intend to actively seek opportunities for investment in the motor trade."

Directors' remuneration rose from £421,000 to £471,000, with the highest-paid seeing their emoluments jump from £171,000 to £185,000.

The accounts state the company bought back 7750 ordinary share and 2500 preference shares for in excess of £1m during the year.