Fleet News

EMH results affected as car buyers hold off

NEW car buyers are delaying their purchases in anticipation of price cuts, Richard Palmer, chief executive of European Motor Holdings, said this week. The 40-strong franchise dealership group reported pre-tax profits for the six months to August 31 of £4.23 million on turnover of £225 million.

However, a change in the company's financial year and the end of the annual vehicle registration plate system means the results are not directly comparable to the same period last year, when pre-tax profits of £5 million were reported on turnover of £233.7 million. However, the results reported reflect an improvement in profitability in all months except August - due to the plate change according to Palmer.

He said: 'We have made a good start to the year, but unless the uncertainty over price realignment is brought to an end quickly, further progress may be delayed.' Claiming that the pricing differentials between the UK and Europe were adversely affecting trading, Palmer said: 'This situation appears to be worsening, but we hope that the uncertainty this issue has created will soon be resolved.'

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