Lookers posts 7 per cent profits rise

Operational profit before exceptional items rose 9 per cent to £40m on turnover of £1.68bn – a 17 per cent increase on 2006.

The group claimed it had made “steady progress” in a year in which it boosted its portfolio with the £55m acquisition of the Dutton Forshaw Group in October.

Chief executive Ken Surgenor said: “These results are testament to our successful strategy of having a diversified business model from which we continue to enjoy broad revenue streams.”

Surgenor said FPS Distribution, Lookers’ aftermarket parts business continued “to move from strength to strength” last year with a 12 per cent rise in operating profit despite absorbing costs of £800,000 from the development of a new distribution facility in Sheffield.

However, the group’s used car supermarket division pulled in a loss of £4.2m last year and has now been subjected to a rationalisation programme which saw new management teams put into two sites in the south west and Midlands.

A significant development for Lookers in 2007 was the introduction of the Ford franchise to its network in August with the acquisition of the former Dixons motor Group site in Sheffield.

The purchase of Dutton Forshaw brought another seven Ford outlets on board.

As a result Lookers now holds franchises representing 83 per cent of the UK new car market.

In 2007 the group claimed its new car sales grew 9 per cent against a market increase of just 2.5 per cent.