Lookers reveals half-year profit growth

Car dealer Lookers has reported seven-figure profit growth for the first half of 2016.

In the six months to June 30, the Manchester company’s pre-tax profit grew year on year by 17% to £46.7m, up from £39.9m during the same period in 2015.

Similarly, the firm’s operating profit rose by 20% to £59.1m, while its revenue leapt by 33% to reach £2.34bn.

Lookers has attributed part of the growth to investment in its online presence. In 2015, the company launched a revamped website and since then has recorded a 31% increase in leads online.

Andy Bruce, the firm’s chief executive, said of the growth: “I am pleased to announce an excellent set of results for the first half of the year.

“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.”

He added: “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.”

Earlier this month, Lookers announced a £120m deal to sell its parts division to distributor Alliance Automotive UK Ltd.

The company also recently announced an agreement to acquire Midlands-based car retailer Warwick Holdings Ltd, which trades as Drayton Group, for £55.4m.

Speaking further, Mr Bruce said the sale of Lookers’ part division will “[allow] us to concentrate on what we do best; focusing on our motor division to buy and sell cars, and add value through acquisitions.

He continued: “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.”