UK dealer group Lookers on Wednesday (7 July 2010) said trading to the end of June was ahead of budget and the same period in the prior year and it expected results for the half year to 30 June 2010 “to exceed management’s expectations”.
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“All group divisions are currently performing ahead of plan, with the independent parts division continuing to deliver record results. The motor division has continued to deliver trading results ahead of budget and the prior year and has benefited from new vehicle volume sales growth in excess of the 20% market increase. Although used car sales and aftersales were affected for a short period in January by the adverse weather, trading continues to be at encouraging levels,” Lookers said in a statement.
“The combination of the positive performances in the operating divisions, combined with efficiencies and a reduction in central costs will, we believe, underpin a strong result for the half year.”
Results for the six months to 30 June 2010 are expected on 18 August.
“The new and used car retail markets are likely to continue to be affected whilst consumer confidence remains fragile, although the aftersales bias to our motor division helps to reduce this effect,” the firm added.
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By GlobalData“There has been a continued recovery in the corporate new car market, which represents a continuing opportunity to improve our market share and there are further cost savings to deliver. We believe these factors will help to underpin a successful result for the year for the motor division.”
Chief executive Peter Jones said: “We believe the group will deliver record results for the first half of the year, giving us confidence that we can continue to grow the business and deliver successful results for the full year, despite the economic challenges facing the UK retail sector.
“The factors that created exceptional charges in 2009 are now behind us, ensuring that trading profits and cash flow are not eroded and further strengthening our balance sheet, thereby providing the flexibility to take advantage of growth opportunities where they occur.”
