Business model

Hi,

I am quite interested to understand how Dixon Homes is different from their competitors.

Main elements I have been able to find so far :
- they have no display homes,
- their staff costs seem much lower than their competitors.
According to the figures I could find, they have been stable at around 7 % of revenues for a long time*, while the industry has much a much higher ratio (around 16 % for the last figures I could find, for the period 2014-2019).
- very low level of advertising (between 0.4 % and 0.5 % for the last 2 years).

Also interesting to compare with Simonds Group in FY 23 :
- Tamawood had a higher gross margin : 17.5 % vs 16.5 % for Simonds (in FY 22 : 20.1 % vs 19.7 %),
- but the main difference is regarding the cost structure :
. staff costs /revenue : 8.9 % for Tamawood vs 11.3 % for Simonds,
. advertising / sales : 0.4 % for Tamawood vs 2.9 % for Simonds (what is classified as "marketing and selling expenses" for Simonds).

Please do not hesitate to correct and/or add on the above.

Thanks.

* some increase for this ratio in FY 22 and FY 23 to 8.5 % - 9 %, but came back to 7.4 % during Q1 24.