Revenue surges as Lookers seeks to shed parts division

Motor retail and aftersales service company Lookers announced its results for the six months to 30 June on Wednesday, with revenue increasing 33% to £2.34bn, from £1.75bn at the same time last year.

The FTSE 250 firm recorded operating profit growth of 20% to £59.1m, while adjusted profit before tax increased 16% to £50.1m.

Profit before tax improved 17% to £46.7m, and earnings per share were up 17% to 9.44p.

Lookers’ board declared an increase in the interim dividend of 20% to 1.28p per share, compared to 1.97p a year ago.

“We have worked hard at pursuing the strategic priorities for the business which we laid out in March; having the right brands and locations alongside excellent execution,” said chief executive Andy Bruce.

“Through careful portfolio management and a focus on delivering the best service for our customers, our motor division has continued to grow strongly and has delivered record results.

“The parts division has also performed well,” Bruce added.

He explained that, since the period end, Lookers has also announced the conditional sale of its parts division to concentrate on the motor division to buy and sell cars, and add value through acquisitions.

“The sale of the parts division is a great opportunity to shift our strategy and to focus on the higher growth division of the business.

“We are delighted to have already announced the acquisition of Drayton Motor Group, which we believe fits our acquisition criteria of selecting excellent businesses which will be of strong financial and cultural benefit to the group,” Bruce said.