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Dixon reports record interims

Dixon Motors has reported record interim results, with profits up 29% year-on-year in the first six months of 2001 and an increased market share in all areas of its business.

Pre-tax profit was up to £7.34m from £5.68m year-on-year, with turnover at £443m from £367m, an increase of 20.7%.

Retail car sales increased by 23.5% from 26,139 to 32,287, representing a 7% increase in a UK retail market seeing a 4.3% increase. Dixon's overall gross margin has also improved to 12.9% (2000: 12.3%).

Paul Dixon, company chief executive, said: “There's been a definite improvement in consumer confidence during the period, with negative publicity surrounding price differentials within Europe moderating. Wherever possible we are using our buying power to deliver excellent value and we continue to promote our Real Price List to improve price transparency for the customer.”

Mr Dixon added that customer traffic in July was “slightly less buoyant” than in the first half of the year. “But the new vehicle registration plate will be introduced in September and the first indications are that this will generate significant sales volumes.”

He said that during the first half of the year Dixon has taken orders in excess of £35m and achieved sales of £20m through, its online operation with Direct Line.

Dixon Car Clinics enjoyed a 10.3% increase in sales to £9.1m and operating profit up 18% to £679,000 (2000: £574,000). At the end of June a new operation was acquired in York and another is due to open in Lincoln in September.

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