Lookers reports seventh consecutive year of profit growth

Record performance in motors and parts drove another year of growth at Lookers in 2015, it said in its annual results on Wednesday, with revenue rising 20% during the calendar year to £3.65bn.

The FTSE 250 firm's operating profit increased 12% to £85.9m, with adjusted profit before tax going up by 11% to £72.1m. Earnings per share were up 7.1% to 12.88p, and adjusted earnings per share grew 12.7% to 15.24p.

Lookers reported record performace from its motor and parts division, and saw good progress from its independent aftermarket parts division. The company said there was also a positive contribution from acquisitions, including the successful integration of the Benfield business.

Investment in the Lookers website was also driving enquiries, the board said.

"We have delivered another strong trading performance in 2015, our seventh consecutive year of increased profits, which provides further evidence that our business model is both resilient and expansive through the cycle," said Lookers chief executive Andy Bruce.

"Our motor division and our parts divisions also produced excellent results, showing the diversity and strength of our operations," he added.

Bruce said the company's strategy was to have the right brands, the right locations and excellent execution, and by implementing such a strategy, Lookers was ideally placed to take advantage of growth prospect across all areas of the business, as well as consolidation opportunities in the sector.

"This gives us confidence that we will deliver another improved performance in 2016."

Lookers' board proposed a final dividend of 2.05p per share, taking the total annual dividend to 3.12p - an increase of 10% on 2014.