Profit up at Lookers as sales grow
CAR dealership Lookers reported a 13.5 per cent rise in first-half profit, the group said yesterday, as sales in its used car and parts units rocketed.
Lookers said its used car sales rose 8.5 per cent in the first half thanks to a strong recovery in prices since the end of 2008, and added its parts business grew profit by 16 per cent.
Lookers, which has over 100 dealerships selling new and used cars, said its pre-tax profit for the six months to June hit £17.6m, while revenue was16 per cent lower at £870.4m.
“Used cars, parts and aftersales are going really well but we are still cautious on the new car market. We saw a small uplift in new car sales in July but it is still being impacted by weak consumer confidence and fear of unemployment,” chief executive Ken Surgenor said. He also added his voice to demands for an extension of the scrappage scheme.
However, the company warned the second half would be tough, especially in the sluggish new car market.
The firm, which recently raised £80m in a share sale, said its new car sales fell 26 per cent in the first half, despite the government’s “cash for bangers” scheme.
Lookers said it would not pay an interim dividend, having paid out of 1.6p per share a year ago.