Lean Lookers to smash profit record
NORTH West car dealership and parts supplier Lookers is set to report record profits this year after emerging through the recession a leaner and stronger business.
Chief executive Peter Jones told TheBusinessDesk the Manchester-based company had grown its market share in new and used car sales despite the recession.
“We are pleased with the performance. Lookers’ best-ever performance was a pre-tax profit of £26.1m in 2006 and we will exceed that.
“We have had an interesting year with renegotiating the banking arrangements and raising equity in the City, but the underlying business has been very strong.”
Mr Jones – who succeeded long-serving CEO Ken Surgenor last year – said Lookers, which runs more than 100 dealerships nationwide, had benefited from the closure of smaller independent firms during the recession.
He hailed too the performance of the parts business and said the aftersales service division was the major contributor to the group’s profitability.
He said the parts division, which also provides a significant contribution to group earnings, would will achieve a record result for the year.
Lookers said its had grown new car market share by 13% in a market which despite the Government’s scrappage scheme was down %.
Used car sales remained strong with full year volumes up 6% on 2008 levels.
outlets and continue to add incremental product lines to the parts business.
Mr Jones, pictured, said: “Despite the difficult market conditions we expect to deliver a record trading performance for the company in 2009.
“We believe that market conditions will remain challenging in 2010. Nevertheless, the strong performance from both the parts and motor divisions, supported by our strengthened balance sheet and reduced cost base, gives us confidence that we will continue to trade successfully through the period, and be in a position to pursue strategic growth opportunities as they arise.”
Mr Jones said Lookers was not looking at any “big ticket” acquisitions, but would like to add more Ford dealerships to its portfolio and also start to sell BMWs for the first time.
Shares rose 4.35% to 54p on the back of the upbeat news.
