Lookers revs up after strong start to year
CAR sales, service and parts supplier Lookers says it is confident of delivering “strong” first half results after a good start to the year.
The Manchester-based group said in a trading update covering January 1 to May 9, its motor division had made an “excellent” start – with sales in the quarter to the end of March, ahead of both budget and last year.
The company said that despite a slight fall in turnover in its parts division – due to consumers putting-off non essential repairs – the group is still in good shape and half year would be in line with management expectations.
Lookers said: “Whilst economic conditions continue to restrict recovery in the new car market generally, we are encouraged by the group’s positive start to the year.
“Used car volumes for the quarter were significantly higher than the prior year with an increase of 11%. Margins were also higher than the previous year, so the financial performance from used cars has had a particularly positive start to the year.”
The company said it has “substantial headroom” in its bank facilities, giving it both financial security and firepower to make “strategic acquisitions in both the motor and parts divisions” which would help to provide additional future growth.
Looking ahead, Lookers said: “The new and used car markets continue to be affected by uncertain economic conditions. However, the aftersales bias to the business and the strong performance over the last three years, demonstrates the ability of the group to perform well in challenging markets.
“We are therefore confident that the group is in a good position to deliver a strong first half year performance and make further progress in the year, as well as being exceptionally well placed to benefit from medium term market recovery.”
