Lookers ahead of budget
LOOKERS, the North West car dealership group, has said its performance has been “significantly” ahead budget and the previous year.
The Manchester-based group has reported a strong trading quarter to the end of September, and said was bolstered further by lower interest costs.
But it added that the UK market for new cars continues to be challenging, having fallen by 15% year on year to the end of September.
Despite this, the group said its like-for-like new car sales are 11% ahead of the market, boosted by sales under the Government scrappage scheme and corporate sales.
Used car volumes and margins have been maintained at high levels, offseting the weaker performance in new car profits, it said.
The group added that franchise aftersales revenue is showing good growth, up 3% in a declining market.
Peter Jones, chief executive, said: “We are pleased with the strong trading performance for the third quarter following the excellent result for the first half of the year which was delivered in a difficult market.
“Economic conditions remain uncertain and we believe trading will continue to be challenging for the new car market. However, we anticipate used car volumes and margins will be maintained at current levels.
“Our market leading parts division is performing at record levels and our dealership aftersales business is trading well.”
The group said it will continue to focus on areas where it can improve the performance of the group’s franchise outlets and continue to explore incremental product opportunities for the parts business.
The company raised £80m through a rights issue in July, which it said had strengthened its balance sheet and meant it was now well placed to take advantage of opportunities which may arise.
Mr Jones added: “These factors, together with our strengthened balance sheet, give us confidence that we will continue to trade successfully in the current economic climate and be able to take advantage of selective opportunities as they arise.”
Lookers reported a 13.5% rise in pre-exceptional first-half profit to £17.6m on turnover down 16% at £870.4m, to the end of June 2009.
