The fallout from the Volkswagen diesel scandal has seen an East Anglian motor group's profits shrink by £1.9m.

Despite increasing turnover Marriott Motor Group, which is headquartered in Ipswich and has sites in King's Lynn, Bury St Edmunds and Stowmarket, saw a fall in pre-tax profit to £208,300 in the year to December 31, 2015, according to accounts newly filed at Companies House.

Although vehicle sales of new and used cars increased, the company blamed tighter margins in the industry and the effect of the 2015 emissions scandal for the fall in profitability. The group, which saw turnover rise by £5.3m to £160m, invested in both its King's Lynn Audi and Volkswagen branches which it said had caused some short-term operational issues, impacting sales.

The EDP/EADT Top 100 company's new showroom at Futura Park, Ipswich, is scheduled to open by the end of the year.

The group's strategic report, filed with its accounts, says: 'Group profitability has reduced significantly against 2014 due to continued pressure on new car margins and the impact of the Volkswagen emissions scandal.'

The German car manufacturer was last year found to be using software which could cheat emissions tests to make vehicles seem more environmentally friendly.

The strategic report adds: 'We believe continued brand investment in the product range and our investment in customer care, together with our strong working relationship with the brands will enable us to improve on our already strong market position.'

Marriott employed an average of 341 staff throughout the year.

How has your business performed this year? Write to doug.faulkner@archant.co.uk