Dundee company sees profits rise 31 | 05 | 2011

DUNDEE COMPANY Barnetts Motor Group has reported an 11% increase in turnover, and the growth in used car sales has been crucial in growing the turnover to £45 million.

The dealership — which operates Peugeot, VW, Mazda and Volvo franchises — said used car sales accounted for £2.2m of the increase, while new car sales remained "stronger than anticipated" following the end of the government-backed car scrappage scheme.

And the company also saw pre-tax profits rise from £714,944 to £752,225 in the year to the end of 2010.

Barnetts said it expects this year to be "challenging" as the latest VAT increase to 20 per cent threatened to dampen consumer demand and cut profit margins. The firm, which operates from its flagship sales room at Riverside Dundee, employed 126 in 2010.

"The directors' focus in 2011 will be to improve customer service and to concentrate on doing the simple things well," the board's statement said. "We are confident that by focusing on providing outstanding customer service we can mitigate the effects of rising inflation and weak demand from customers."

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Craig James