Lookers plc drives turnover up 15% despite new car market dip

UK motor group Lookers plc saw its turnover rise 15% in 2017.

The Altrincham-headquartered company generated sales of just under £4.7bn in the 12 months to December 31, up from £4.09bn the year previous.

Lookers’ pre-tax profit for the period was down by over £21m, falling from £79.6m in 2016 to £58.4m last year.

The dip was however attributed to an exceptional profit boost of £28m on the sale of the firm’s parts division in 2016.

Lookers saw growth last year across both its new and used car sales, with turnover for each growing 12% and 19% respectively. This is despite a backdrop of falling sales in the new car market, according to chief executive Andy Bruce.

He said: “We have delivered a robust set of results with good growth across all areas of the business, demonstrating the resilience and differentiation provided by the Lookers business model.

“Against a backdrop of a 5.6% dip in the new car market, we have seen strong momentum in used cars and aftersales.”

Mr Bruce continued: “We have made good progress with our strategy over the year and remain focused on having the right brands in the right locations, combined with excellent execution that gives our customers a personal, relevant and multi-channel retail experience.

“We have managed our portfolio of dealerships to reflect this goal and our franchise representation is well positioned for the future.”

Lookers now operates from a network of 155 franchised dealerships.

Speaking further, the chief exec said: “The order book for new cars in the important month of March is in line with our expectations and whilst the new car market for this year is forecast to reduce, it is still at a historically high level. We expect to make further progress over 2018 with good momentum in used cars and aftersales and a resilient performance in new cars.”

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