Lookers hits top gear as profits soar

LOOKERS, the listed new and used car sales and automotive parts specialist has delivered another blue riband performance as annual results for 2014 raced ahead.

On the back of a booming new car market, the Manchester-based group said sales in the year to December 31 had soared by 23% to beyond £3bn for the first time (from £2.46bn to £3.04bn).

Profits roared ahead nearly 35%, from £43.9m in 2013 to £59.2m. In line with its strong performance – its sixth year of growth – the company raised its annual dividend 10% to 2.84p per share.

Chief executive Andy Bruce said: “We have delivered another strong trading performance in 2014, our sixth year of successive profit growth. The motor division has produced an excellent result and the parts division has made good progress, delivering a strong performance in improving but competitive market conditions.

“Lookers is well placed to take advantage of future growth in the new and used car markets as well as increased demand for aftersales and parts. This gives us further confidence that we can continue to grow the business in 2015.”

The group sells approximately 135,000 new and used cars per year and it also has an independent parts distribution business, based in Sheffield, which is the leader in the sector.

Its motor division consists of 123 franchised dealerships representing 32 marques at 77 locations. In 2014  profits in the motor division surged 37% to £58.3m.

Lookers said the parts division had made good progress and produced a strong result for the year with profits rising from £11.8m to £12.2m.

Chairman Phil White said the group was well-placed to continue its recent run of good form.

“The UK new car market has now benefitted from three years of strong growth which we now expect to stabilise. Our motor division has produced an excellent result during 2014 and we believe there are still further opportunities to develop our existing business in addition to benefiting from acquisitions made in 2014. The parts division has made good progress and has further potential for future growth and development.

“The new financial year has started well with group results to date being in line with expectations. We are therefore confident of delivering further growth in 2015.”