Dixon Motors outperformed its profit expectations in the first half of the year, while rivals Perry Group and Lex Service - which sold its dealerships in March - struggled in the face of the retail buyers' strike.

##Dixon(1)--left##Chief executive Paul Dixon (pictured left) said: “We have started the current financial year ahead of our forecasts and we have yet to benefit from Jamjar.com or our distribution facility. We will stretch our lead as long as we match customer expectations.”

He said Bikenet.com, the online retailer owned 50% by Dixon, would soon be listed on the Alternative Investment Market.

Dixon turnover rose 4.1% to £367m, while profits jumped 21% to £10.1m.

Perry Group blamed the buyers' strike for a 5% drop in turnover to £230m, though operating profits held up in the six months to June 30.

Chairman Richard Allen said: “The improvement in operating performance is heartening. However, the outlook for the second half will be more challenging.”

Lex Service, which sold its dealerships to Pendragon Group, reported six-month pre-tax profits down from £35.8m to £29.2m, but operating profits up from £34.5m to £35.5m on the back of £14.3m profits from RAC.