Lookers drives forward with profits
CAR sales, service and parts supplier Lookers continued its strong recent track record with a 29% hike in half year profits and restoration of its dividend.
The Manchester-based group said revenues in the six months to the end of June had risen 13.5% to £988.3m despite challenging market conditions. Adjusted pre-tax profits rose from £17.6m to £22.7m.
Chief executive Peter Jones said the company which has 122 franchised dealerships at 76 sites nationwide, is confident for the full year.
“We are pleased to announce that we have delivered a record trading performance in the first six months of 2010, despite difficult market conditions and we are very encouraged by this result.
“The strong performance from both the parts and motor divisions, a reduced cost base together with significant positive operational cashflow which has strengthened the balance sheet, give us confidence that we can continue to grow the business, deliver successful results for the full year and be in a position to pursue strategic growth opportunities as they arise.”
Lookers, like manyof its rivals, benefitted from the prebious Government’s motor vehicle scrappage scheme, which was designed to revive the market during the recession. Like-for-like new car sales were up 26% to 32,469.
Used car volumes were down 6% though, but the profit per unit was slightly higher than last year, the company said.
The group’s independent parts division, which contributes more than 30% to group profits, and has long been the star perforner in the group, continued to produce record levels of operarting profits.
It is important too as it is fairly recession proof and not subject to fluctuations in the new car market.
Lookers said it had slashed its debts from £155m last year to £54.6m and was paying an interim dividend of 0.6p per share.
Looking ahead chairman Phil White said the company had continued to out-perform the new car market since the end of the half-year.
He said the group was looking at “selective acquisition opportunities” for both car dealerships and the parts division.
