Lookers reports positive trading in third quarter

In the nine months to the end of September, total gross profit from new cars was up 11%, or flat on a like-for-like basis.

Meanwhile, margins for fleets cars increased but there was some softening in the margin for new retail cars.

Gross profit from used cars was up 22% compared to the previous year, or 8% on a LFL basis as used car volumes continue to benefit from higher volumes of leads generated by the group's website.

In the aftersales business, gross profit rose 24%, or 8% on a like-for-like basis and gross margins were maintained at a similar level to last year. Lookers said the increase in volumes and margins continues to benefit from initiatives made in recent years including further increases in the penetration of the sale of service plans.

“As we said in our interim results in August, we have not noticed any significant difference in terms of customer behaviour so far, particularly in respect of orders for new and used cars.

“Notwithstanding the uncertainties over consumer confidence and the GBP/EUR exchange rate, the board is confident that the group will make further progress during the rest of this year with revenue and profits ahead of last year's performance and in line with market expectations.”

At 1040 GMT, the shares were down 3.2% to 106.25p.