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A strong performance from its parts division and new and used car sales helped Lookers double profits in 2009.
Adjusted profit
Adjusted profit before tax for the year ending 31 December 2009 increased 102 per cent to £28.3m. Like for like turnover increased 4.2 per cent to £1.75bn. New car sales for the group grew by 13 per cent to 61,372 cars and were 19 per cent ahead of the UK market.
While volumes of used cars across the UK fell 6 per cent in 2009, Lookers’ sales were up 6 per cent to 42,378 and gross margins improved from 8 per cent in 2008 to 11 per cent last year.
Independent parts
The independent parts division, which operates through three companies supplying hard parts, saw turnover up 18 per cent and profit before tax increased 34 per cent to £11.2m. Lookers said the business is benefiting as the car parc ages because of the slowdown in new car sales.
Lookers chief executive Peter Jones said: “We are pleased to announce that we have delivered a record trading performance for the company in 2009 despite difficult market conditions.
Market conditions
“Although we believe that market conditions will remain challenging in 2010, we are encouraged to report that we have made a strong start to the year.
“The strong performance from both the parts and motor divisions, supported by our strengthened balance sheet and reduced cost base, places us in a strong position and gives us confidence that we will continue to trade successfully through the period, and be in a position to pursue strategic growth opportunities as they arise.”