Fleet News

Motorcycles help Dixons' interim pre-tax profits to increase by 67%

A MOVE from four wheels to two as people try to beat traffic jams has contributed to car and motorcycle dealer Dixon Motors lifting interim pre-tax profits 67% to £6.7 million (1997: £4 million). This was achieved on turnover up 83% to £318 million (1997: £173 million) for the six months to June 30.

The company saw new car sales grow more than 17% on a like-for-like basis to reach a total of 12,394 and used cars sales 20% (14,821), but chief executive Paul Dixon admitted the vagaries of the used car market had presented a challenging second quarter with supply exceeding demand in the nearly new sector and a resulting 'significant fall' in residual values.

Meanwhile, Dixon Motors, which has 57 car dealerships and 11 motorcycle centres, has benefited from an increasing popularity of motorcycles and mopeds with a resulting 32% rise in sales in the first six months of the year. The company said it expected the trend to continue - particularly mopeds and other commuter bikes - as people looked for alternative and more economical modes of transport.

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