A bus company boss has confirmed he has already begun a search for new headquarters amid fears a lack of room to expand on its current site could force them to drive out of town.

Sanders Coaches has increased the size of its fleet from 14 to 55 buses since it began operating from a base in the town's Hempstead Road in 1991.

But it has reached a dead end in attempts to expand the business on to neighbouring land, which forms part of a mixe-use development site with planning permission for more than 200 homes.

Speaking ahead of the start of construction of a new roundabout into the housing estate from the A148 Cromer road next month, managing director Charles Sanders said: 'We have more than 60 employees working here, who are mostly reliant on cars. More space is urgently needed for our fleet and for staff to park.

'Many of our staff park on the road, which will now have to be kept clear for construction vehicles.

'We could get rid of vehicles and cut back services or find somewhere else to go. We are starting that search and weighing up our options.'

But he warned: 'Holt is one of the best served towns in the county for bus services and if we go the town will be the poorer for it.'

The company has been based in Holt since it was set up by Mr Sanders father Norman in 1975.

A statement issued by Holt Town Council said: 'Holt Town Council is extremely concerned that the industrial land that has been earmarked for much needed expansion has been dormant for 25-30 years.

'We have seen three large employers leave the town through lack of premises and we are very concerned the third largest employer in Holt might also be forced to leave the town so they can expand their operation.'