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Dixon Motors reports fall in pre-tax profits

Dixon Motors has today announced its preliminary results for the year ended 31 December 2000 which show total sales for new and used cars increased by 11.5%, with turnover up more than 6% to £702m – but profit before tax fell from £8.11m in 1999 to £7.55m.

Total sales of new and used cars increased to 63,991 units (1999: 57,404), while like- for-like sales increased 1.3 % to 56,724 units (1999: 55,989).

Sales of new and used motorcycles increased by 40.4% to 13,688 (1999: 9,748) and like-for-like sales increased by 21% to 11,469 units (1999: 9,477).

Jamjar.com, Dixon's online car retailing joint venture with Direct Line launched in July, has sold 1,100 units in its first six months of trading and has sold 800 units in the first two months of 2001.

In the motorcycle division the strategy of growing market share (the acquisition of Motorsport Dealers International for £8m gave Dixon a market share in excess of 10% of new motorcyle sales) boosted turnover, but contributed to a 27.7% fall in operating profit.

Paul Dixon, Dixon Motors' chief executive, said: “The past twelve months may well prove to be a watershed for both the car and motorcycle sectors in the UK. Rapidly shifting market conditions – driven by competition law, fuel costs and increasingly, consumer sovereignty – have led to a shake out within the respective sectors. It is my belief that we have anticipated and reacted positively to this sea change in our markets. “Dixon has broadened its platform within both markets and is driving down costs. We have invested in the way we fulfill customer orders and we have continued to negotiate hard with manufacturers to drive value for consumers. It is this combination of strategic vision and commercial focus which sets us apart from our competitors – and it is this formula which I believe positions us very well to capitalise on future changes.”

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