Andy Bruce, Chief Executive of Lookers, said:
“I am pleased with our performance over the first half of the year, which has been delivered despite ongoing challenging market conditions. Although profits, excluding a profit of £7.6 million on the sale of a property, are down on last year, as expected, this was due to a very strong comparative period, driven by record new car sales ahead of the decline seen across the market from April 2017.
“Against this backdrop, we continue to show good strategic momentum, winning market share and outperforming the wider industry, demonstrating the benefits of our clear strategy of having the right brands in the right locations, with a well invested dealership portfolio combined with excellent execution. We are also benefiting from our scale and our diversified business model which has resulted in revenue and gross profit growth across both used cars and aftersales.
“Looking forward, we have an encouraging level of orders for the important month of September. Whilst the new car market has seen further reductions in 2018, the decrease appears to have stabilised and volumes remain at a historically high level. Based on our first half performance we expect to meet market expectations for the full year.”
Lookers plc (LON:LOOK), one of the leading UK motor retail and aftersales service groups, today announced its results for the six months ended 30 June 2018.
Key financials:
|
HY2018 |
HY2017 |
Change |
|
|
Turnover |
£2.58 billion |
£2.46 billion |
5% |
|
*Adjusted operating profit |
£52.8m |
£58.1m |
(9%) |
|
*Adjusted profit before tax |
£43.1m |
£50.2m |
(14%) |
|
**Profit before tax |
£45.7m |
£44.6m |
2% |
|
* Adjusted earnings per share |
9.07p |
10.49p |
(14%) |
|
Earnings per share |
9.71p |
9.07p |
7% |
|
Interim dividend per share |
1.48p |
1.41p |
5% |
Operational highlights:
· New car turnover was stable, with the reduction in volumes less than the overall market decline
· Total group turnover of used cars increased by 12% and gross profit increased by 4%
· Turnover for aftersales increased by 6% and gross profit increased by 7%
· Invested £14 million of capital expenditure into improving dealership facilities
· Strengthened portfolio of franchise representation by closing two dealerships and opening one new site in the period
Outlook:
· Impact of Worldwide Harmonised Light Vehicle Testing Procedure (“WLTP”) has potential to cause some volatility in the supply of new vehicles
· Encouraging level of orders of new cars for the important month of September
· On course to meet market expectations for the full year
