Motor retailer Lookers reports profit growth amid increased sales volumes

Car dealership chain Lookers has reported a “strong” performance for the six months ending June 30, with 2015 so far marking its seventh consecutive year of profit growth.

The company, which is headquartered in Stretford, near Manchester, saw its pre-tax profit grow by 6% to £39.9m during the period, against £37.7m at the same point in 2014.

At the same time, Lookers’ net debt shrank from £51.9m on January 1 of this year to £38.2m by June 30, while the group’s total revenue rose year-on-year by 9% to £1.75m.

The firm’s chief executive, Andy Bruce, said of the results: “We have delivered a strong trading performance in the first half of the year which is another record result and the seventh successive year of improved profitability.

“Both the motor and parts divisions have produced excellent results with improved cash flow for the period, further strengthening our balance sheet.”

Lookers has seen its gross profit per new car sold, which includes both retail and fleet vehicles, increase year-on-year by 7%. In the used car market, the company saw its sales volume rise by 8%.

In the six months to June 30, the firm has expanded by acquiring a Canterbury-based Mercedes-Benz business to complement its existing Mercedes-Benz dealerships in Sussex and Kent. Additionally, Lookers added a used car operation and Audi service in Glasgow and a used car centre in Dublin.

Andy continued: “We are well placed to take advantage of growth prospects across all areas of the business as well as consolidation opportunities in the sector. This gives us confidence that we can continue to grow and deliver improved results for the full year.”