Lookers enjoys sales growth
CAR dealership network Lookers has said that the strong performance experienced during the first half of its financial year has continued during the third quarter as it updated the city on its performance since July.
The firm said that its results for the first nine months of the year were ahead of both last year’s performance and its own budgets, with its new car sales ahead of the market’s 7.8% level in volume terms.
It has also closed or sold five under-performing new car sales operations to raise cash, which it said would be invested in new businesses “that offer the opportunity of a greater return on capital”.
The Manchester-based business also said that used car sales were 8% higher than in the third quarter last year, and continued to offer “satisfactory” margins, while its Yorkshire-based independent parts division continued to improve profits and is trading ahead of expectations. The company’s after-sales division also continued its growth and was up 2% against general backdrop of decline in the wider market.
Lookers said that although the new and used car sales market would continue to be affected by weak consumer confidence, its strong aftersales bias meant that it was well-positioned to continue its growth.
It also argued that the independent parts division provided a “counter-cyclical hedge” against the potentially weaker market for new car sales.
It added that its healthy balance sheet and ample headroom against its banking facilities allowed it the opportunity to look for acquisitions in both the motor sales and parts markets.
“We are pleased with the strong trading performance in the third quarter, which follows the excellent result for the first half of the year,” said chief executive Peter Jones.
“Whilst market conditions remain challenging, the strong performance from both the parts and motor divisions, combined with our reduced cost base and strengthened balance sheet, give us confidence that we will continue to trade successfully for the rest of the year and be able to take advantage of growth opportunities which may arise in 2011 and beyond.”
