17th Aug 2016 06:37
LONDON (Alliance News) - Car dealer Lookers PLC on Wednesday reported growth in pretax profit and a surge in revenue in the first half of 2016, driven by a buoyant trading environment and contributions from acquisitions.
The company said pretax profit for the six months to the end of June was GBP46.7 million, up 17% year-on-year from GBP39.9 million, as revenue increased 33% to GBP2.34 billion from GBP1.75 billion.
The results prompted a hike to Lookers' interim dividend to 1.28 pence, a fifth higher than the 1.07p paid out a year prior.
Lookers said its Motor division delivered a 22% rise in operating profit for the first half. Revenue for its new car business grew 38% and by 12% on a like-for-like basis, while used car revenue increased 38% and by 7% like-for-like. Aftersales revenue rose 24% and by 7% on a like-for-like basis.
"I am pleased to announce an excellent set of results for the first half of the year. We have worked hard at pursuing the strategic priorities for the business which we laid out in March; having the right brands and locations alongside excellent execution. Through careful portfolio management and a focus on delivering the best service for our customers, our motor division has continued to grow strongly and has delivered record results," said Chief Executive Andy Bruce.
Lookers last week announced a GBP120.0 million deal to sell its Parts unit, which distributes automotive parts in the UK, to Alliance Automotive UK Ltd for GBP120.0 million. It followed that on Monday with a GBP55.4 million agreement to acquire seven-strong dealership franchise Drayton Group.
"The sale of the parts division is a great opportunity to shift our strategy and to focus on the higher growth division of the business. We are delighted to have already announced the acquisition of Drayton Motor Group, which we believe fits our acquisition criteria of selecting excellent businesses which will be of strong financial and cultural benefit to the group," Bruce said on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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