UNCERTAINTY surrounding pricing, fuelled by the Competition Commission report, means customers continue to hold off purchasing new cars. Speaking on the publication of European Motor Holdings preliminary results for the year ended February 29, chief executive Richard Palmer said sales of new cars had slowed following the publication of the commission's findings from its New Cars Inquiry report.

The Government announced proposed changes in arrangements between dealers and their suppliers, most importantly that dealers should be given the same discounts as fleets when purchasing cars outright. He said: 'The announcement by the Secretary of State for Trade and Industry with regard to the commission's findings has not, as yet, prompted any manufacturers to reduce their prices. Since the announcement, sales of new cars have slowed down further and our April profitability will suffer.'

A large number of customers had deferred purchasing in expectation of lower prices. 'If action is taken by the manufacturers to convince the public that UK prices are closely aligned with European prices, I believe we can anticipate an improved outcome for the year ending February 28, 2001,' he said. Profit before tax for the full year was £7.7 million compared to £6 million in the previous 11 month accounting period. Turnover for the year was £421.8 million compared to £376.8 million for the previous 11 months.