14th Aug 2019 09:30
(Alliance News) - New and used car retailer Lookers PLC held its interim dividend Wednesday as revenue grew in a challenging market, though profit fell by two-fifths.
For the six months ended June, pretax profit narrowed 40% to GBP24.9 million from GBP41.3 million the year prior. This was despite revenue rising 2.7% to GBP2.65 billion from GBP2.58 billion the year before.
Profit performance was hurt by weaker earnings from its new and used car sales as well as leasing business. Meanwhile, revenue was helped by healthy growth from used cars, aftersales and leasing sales which was partially offset by decline in new car sales.
"Our performance for the first half reflects an ongoing backdrop of challenging UK market conditions for the sector," Lookers Chief Executive Officer Andy Bruce said.
"Whilst we are reporting lower profits year-on-year, we have made good progress on a number of strategic initiatives and have a clear investment plan to restructure and strengthen our regulated activities," Bruce added. "Our balance sheet remains strong including our valuable property portfolio."
Lookers proposed a 1.48 pence per share interim dividend, unchanged on the year prior.
"Working closely with our brand partners I am confident in the long-term prospects for the business," Bruce continued. "The board's current outlook for the full year at the underlying profit before tax level remains unchanged."
Shares in Lookers were 0.7% lower at 43.70 in London on Wednesday.
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