30th Oct 2013 10:51
LONDON (Alliance News) - Lookers PLC, the UK-based car retail and servicing company, said Wednesday its trading performance in the third quarter was strong, and judging by the first 10 months of the year, is confident that its trading performance for the full year will be significantly ahead of current market expectations.
Lookers said that in the first 10 month of the year, trading momentum has been strong, building on a strong performance in the previous year. It said that it expects further growth due to the broad base of its franchise operations, an improving aftersales business, and a further recovery in the UK new car market.
It said its motor division delivered another strong performance, driven by the UK new car market increasing by 11% in the nine months to September 30. The retail new car market rose 17% and the fleet market increased by 6%, it said.
It said its own fleet volumes declined by 6% as its avoided low profit transactions, however fleet margins increased, more than offsetting a reduction in gross profit from the lower fleet sales volumes.
Lookers said that used car volumes in the nine month period increased by 20% compared to last year, and reported an increase in its used car margins. The group said it remains strongly focused on used car pricing, stock management and increasing sales opportunities being generated by its online site.
Lookers said that its aftersales business in the motor division boosted turnover and increase its margin.
It also said its parts division has returned to growth this year, helped by continued investment in existing and new product lines. It said that turnover is up 5% and profits have increased compared to the prior year.
Lookers shares were trading at 133.66 pence per share Wednesday morning, up 5%.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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