Car dealer group motoring ahead

MANCHESTER-based car dealer group Lookers says it has continued improvements in all areas of its business in the first quarter of 2016.

The listed trader said total gross profit from new cars increased by 5% on the same period last year.

Margins for both new retail and fleet cars were maintained at a similar level to the prior year.

“The company produced a positive trading performance in the, ahead of the prior year, with a strong result during the important month of March,” a statement said.

“Gross profit from used cars increased during the period and margins also improved, resulting in an increase in gross profit of 23% compared to the prior year or 7% on a like for like basis.

“Our used car volumes continue to increase in part due to higher volumes of leads generated by the group’s website, which have increased further compared to last year.”
 
Its cash flow continued to be strong during the period and was significantly higher at both the operational and net cash flow levels compared to budget.

The sale of its Battersea VW dealership and gone ahead realizing proceeds of £18.1m, which have been used to reduce group borrowings.