Lookers motors ahead despite downturn
CAR dealer Lookers today predicted it would defy the downturn in car sales thanks to its acquisition of rival Dutton Forshaw and the return to profit of its Used Car Supermarket operation.
The group said that the acqusition of two VW dealerships and a contract hire fleet of 1,500 vehicles from Harrogate-based Bramall and Jones for £1.75m and £2m of debt last month had strengthened its VW chain of dealerhships to 11 and given it entry to the contract hire market.
It made the acquisition from Yorkshire car sales veteran, Tony Bramall, who founded Bramall and Jones in 2004 after the £230m sale of his CD Bramall motor retail business.
Mr Bramall teamed up with former CD Bramall chief executive Peter Jones to launch Bramall and Jones, and the Harrogate business has retained Audi dealerships in Derby, Lincoln, Grimsby and Boston.
Mr Bramall owns 51% of Bramall and Jones and is a non-executive director of Lookers and holds around 18.8% of its shares.
Lookers chairman Phil White, the Harrogate-based businessman, will tell shareholders at the Manchester group’s AGM today: “Whilst the trading environment for new cars is as challenging as expected, we continue to make progress given our diversified business model and with the positive impact of the Dutton Forshaw acquisition and the return of our Used Car Supermarket business to profitability.”
He will add: “Used retail sales have been similarly adversely affected in Northern Ireland, but overall, our total used retail sales on a like for like basis were only 1% behind last year. The impact of the recently acquired Dutton Forshaw franchises and our aftersales business has to a large extent offset the more challenging market conditions in Northern Ireland.
“Overall we have started the current financial year with a much stronger business compared to last year, albeit we remain cautious about organic growth in
new car sales within our franchise division. However, the acquisitions of Dutton-Forshaw in the last quarter of 2007 and more recently the Bramall and Jones businesses, are expected to provide further growth in 2008. These, together with the continuing investment in our independent aftermarket parts division, and the turnaround in the car supermarkets, will contribute positively to the outcome in the current year.
“We are clearly mindful of the current uncertainties within the UK economy but provided there is no further significant deterioration in the economy, we are still confident of delivering another year of growth in 2008 in line with market expectations.”
