Lookers motors through recession to post profit
LOOKERS, the North West car dealership and parts distribution group, has defied the recession to double pre-exceptional profits to a record £28.3m.
The Manchester company, which has more than 120 dealerships nationwide, said trading in the early part of this year was already up on 2009.
Yorkshire entrepreneur Tony Bramall has a major stake in Lookers and sits on its board.
While overall new car sales stalled 6% UK-wide, Lookers increased its sales by 13% to 61.372, while used car sales were 6% ahead too.
The company’s star performer was its independent parts distribution division – which has a major base in Sheffield – which grew profits by 34% to £11.16m.
The division, which operates under three brands – FPS, Apec and BTN – benefited from the general decline in new car sales.
FPS’ national distribution centre is in Sheffield.
Lookers chief executive Peter Jones said: “The independent parts business continues to go from strength to strength, achieving record results.
“The business continues to benefit as the slower demand for new cars translates into a greater need by consumers for car repairs to their current vehicle as they choose to maintain rather than exchange that vehicle for a new vehicle.”
Lookers said the parts business and the group’s after-sales unit accounts for 60% of gross profit and are not subject to the movement in the new car market.
Turnover in the year ended December 31 was at £1.7bn. After £14m of exceptional costs – £6.6m related to its new banking
facilities and £6.2m from the costs of closing 20 underperforming sites – Lookers posted a profit of £11.4m compared to a £14.9m loss in 2008.
Despite the hike in profits, a condition of its new banking facilities is that it cannot pay a dividend this year. The company said it would look at resuming payments later this year.
Looking ahead, depsite the market remaining tough, Lookers said its prospects were good: “The new year has started well with current trading being ahead of both our budget and the prior year.”
The group is looking to acquire more dealerships, in selective product areas, such as Ford.
