Lookers is in driving seat
CAR dealership and parts supplier Lookers is continuing to race ahead and expects its half year figures to beat its own forecasts.
The Manchester-based group said its performance so far this financial year has been ‘excellent’ and it had continued to build on the record results it revealed in March.
Yorkshire entrepreneur Tony Bramall has a major stake in Lookers and sits on its board.
In a trading update covering the January 1 to May 10 period, Lookers said: “We are pleased to report that our trading performance for the four months ended 30 April 2010 is ahead of budget and prior year and the group is continuing to produce record results.
“Consequently, we expect group results for the half year to 30 June 2010 to exceed management expectations.”
The company said its parts division – which has benefited from the general slowdown in new car sales – continued to sparkle.
It has delivered further improvements in profitability and is trading ahead of last year and also ahead of management expectations.
Lookers, which has around 120 franchised car dealerships, said new car sales were up 23% on the same period last year – the result of the scrappage scheme last year.
The group has increased its share of the retail and corporate market and improved margins. Five new dealership brands are being added to existing sites, the company said.
Despite January’s bad weather, used car volumes have recovered to 2009 levels and margins remain consistent with last year, delivering continuing robust results.
Performance in aftersales is also strong and operating profits are ahead of budget.
Chief executive Peter Jones, said: “While market conditions remain challenging we are very pleased with the excellent start to the year.
“Both the Parts and Motor divisions have produced record trading results in the period and this gives us confidence that we will continue to trade successfully this year and be in a position to pursue strategic growth opportunities as they arise.”
Lookers said the new car market is likely to be challenging this year, but the group’s strong aftersales bias means it is well-positioned to continue to trade successfully and deliver further growth.
