Lookers expects full-year results in line with market expectations

Car dealership group Lookers expects full-year results to be in line with current market expectations following a solid performance in the last nine months from both the motor and parts divisions.

In an update for the quarter ended 30 September, the company said it has seen strong trading in the period, particularly during the important month of September, with a healthy improvement on the corresponding period last year.

Lookers said the motor division delivered "another excellent performance”, with total gross profit from new cars up by 7%, while margins for both new retail and fleet cars were maintained at a similar level to 2014.

Gross profit from used cars rose 7% during the period, with margins largely flat and the group said it continues to focus on stock management, sourcing good quality used cars and improving its online presence through continual improvements to its website.

Turnover in the aftersales business increased by 8% from last year, while gross profit rose 9%. The company said its independent parts division made good progress in the period with increases in both turnover and pre-tax profit compared to the prior year, against a background of an improving but competitive market.

Lookers said the balance sheet continues to be strengthened by strong operational cash flow and positive working capital management, adding that it has substantial headroom in its new and increased bank facilities.

The company said that as announced on 3 September, the major development for the group in the period was the acquisition of Benfield Motor Group for £87.5m. This added 30 dealerships to the business and also made a significant contribution to the group result in September.

It also acquired a Jaguar dealership in Amersham and sold its used car supermarkets in Bristol and Burton-on-Trent.