Takeover target Lookers faring well in tough times
TAKEOVER target Lookers said in a trading update it had made an “excellent” start to the new financial year, but is generally wary as a result of weak consumer confidence and possible supply issues caused by the Japanese earthquake.
The Manchester-based group, which produced record results in March, is being stalked by tycoon Jack Petchey and Brett Palos – stepson of billionaire Sir Philip Green whose overtures so far have been rejected.
In a trading update covering January 1 to yesterday Lookers said it expects to meet half year profit targets. Although new car sales volumes were down in the first quarter Looker grew its market share.
The group’s independent parts division – the bedrock of its success in the last few years – continued to shine, the company said, with profitability ahead of both budget and last year.
Chief executive Peter Jones said: ““Although market conditions remain challenging, we are very pleased with the excellent start to the year.
“Both the motor and parts divisions have produced strong trading results in the period which gives us confidence that we will continue to trade successfully this year and be in a position to take advantage of growth opportunities should they arise.”
Lookers said the first quarter results in the motor division was in line with budget, although slightly lower than last year, which included profits on vehicles sold in the last month of the scrappage scheme.
While the UK new car retail market fell 18% Lookers’ sales were down 10.5%.
Used car volumes rose 6% in the quarter, compared to last year and margins were ahead..
The company added: “The motor division has made a good start to the year which represents a continuation of the progress made over the last two years.
“Economic conditions remain challenging driven by fragile consumer confidence and there are also likely to be some restrictions in the supply of new cars as a result of the Japanese earthquake.
“However, the broad base of our franchise representation and the restructuring of the motor division over the last two years, provide us with greater resilience to meet these challenges.”
