Car dealership’s half year figures smash £2bn
MANCHESTER-based car dealer group Lookers has had a storming half year, with revenues breaking the £2bn barrier and adjusted profits reaching more than £50m.
Turnover increased 33% to £2.34bn (2015: £1.75bn) for the half year to the end of June, while operating profit increased 20% to £59.1m and adjusted profit before tax increased 16% to £50.1m.
Andy Bruce, chief executive of Lookers, called the results “excellent”.
He added: “We have worked hard at pursuing the strategic priorities for the business which we laid out in March; having the right brands and locations alongside excellent execution.
“Through careful portfolio management and a focus on delivering the best service for our customers, our motor division has continued to grow strongly and has delivered record results. The parts division has also performed well.”
Since the period end, the company has been busy – earlier this week, it announced plans to acquire Warwick Holdings, trading as Drayton Group, for £55.4m in cash.
Lookers said the acquisition, which will be earnings enhancing from the next financial year, will increase its partnership with Mercedes Benz and Smart, where the new combined business will have an annual turnover of more than £600m and will provide further for the group in the Midlands.
The acquisition is being funded from existing bank facilities on the condition is that it successfully concludes the £120m sale of its parts division to Alliance Automotive UK, which was announced last week and is expected to complete by the end of October.
Bruce said: “The sale of the parts division is a great opportunity to shift our strategy and to focus on the higher growth division of the business. We are delighted to have already announced the acquisition of Drayton Motor Group, which we believe fits our acquisition criteria of selecting excellent businesses which will be of strong financial and cultural benefit to the group.”
The company also significantly reduced net debt during the six month period to £74.9m (December 2015: £161.7m).
Earnings per share were up 17% at 9.44p (2015: 8.08p) and the company has increased its interim dividend of 20% to 1.28p per share.
