Lookers upbeat after ‘excellent’ performance
LOOKERS, the car dealership, service and parts distribution group with operations in Yorkshire, continued its purple patch during the third quarter and expects its results for 2013 to be “significantly ahead” of expectations.
The Manchester-based group said its trading performance during the July 1 to October 29 period had been excellent, with record results achieved.
Lookers said it had outperformed a strong UK new car market, with core retail new car sales up 19% and 2% ahead of the market and with higher margins achieved too.
Used car volumes for the nine months increased 20% on 2012, which the company said was “very positive” against the background of a relatively flat used car market.
The aftersales business in the motor division increased turnover and margins too. Initiatives such as using electronic vehicle health checks which offer an improved and broader service to our customers while also increasing customer spend per visit, helped performance.
Lookers also saw further traction in its Yorkshire-based parts division has returned to growth this year with both turnover and profits increasing compared to the prior year, against a background of an improving yet competitive market.
The company said it is in a strong financial position with the sale of surplus assets realising £12.4m and allowing the repayment of £3.75m of bank loans in the period. Despite recent acquisitions. including the £10m paid fpr Herfordshire Land Rover dealership Chipperfield, net debt is lower than last year.
Lookers reiterated that it has the funding firepower and appetite for strategic acquisitions in both the motor and parts divisions.
It added: “The excellent performance of the group in the 10 month period represents a further significant improvement in the financial performance of the company, which builds on what was already a strong performance in the previous year.
“This, together with the broad base of our franchise representation, the aftersales bias to the business and further recovery in the UK new car market, provide a positive environment for further growth.”
