7th Nov 2018 09:37
LONDON (Alliance News) - Motor retail group Lookers PLC said on Wednesday that trading in the third quarter of 2018 was healthy, leaving its expectations for the year unchanged.
The group reported that the used car market remained strong, with values remaining stable. Gross profit for used cars in the nine months to the end of September rose by 10% with improved margins, with revenue also growing by 10%.
The Aftersales business also performed well, with gross profit up 6% and revenue up 5%.
However, the Lookers new car business faltered due to a volatile market, amid a supply shortage as vehicles waited to be tested under the new Worldwide Harmonised Light Vehicle Test Procedure, an new emissions test put in place after the Volkswagen AG diesel emissions cheating scandal.
As a result, gross profit from new cars dropped by 5%, while revenue and volumes both fell by 7%; however new car margins and profit per unit were higher compared to the year before.
Shares in Lookers were up 1.5% at 99.60 pence on Wednesday.
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