5th Mar 2014 10:53
LONDON (Alliance News) - Motor retail and aftersales service group Lookers PLC Wednesday reported an increase in profit and revenue for the full-year, reflecting a strong performance across the business.
Manchester-based Lookers posted pretax profit of GBP48.1 million for 2013, up from GBP38.0 million, as revenue rose to GBP2.46 billion, from GBP2.06 billion a year earlier, boosted by strong growth from new and used cars.
It said the motor division increased its pretax profit to GBP42.6 million, from GBP31.7 million a record for the business.
The UK new car market increased 10.8% during the period to 2.3 million cars, with the new car retail market increasing 15.6% and the fleet market increasing 6.7%. Lookers said its core retail new car sales increased 19.0% compared with 2012 levels, on a like-for-like basis.
Lookers said used car transactions in the UK were stable at around 6.7 million vehicles, with group sales volumes up 20% during the year.
The parts division also increased profit and revenue against a background of an improving market.
While sales volumes increased, this was accompanied by a small increase in margin, Lookers said. Overheads, however, were carefully controlled resulting in a 6% increase pretax profit to GBP11.8 million from GBP11.1 million.
Overall, operating margin held steady at 2.4%, while gross margin of 13.6% was slightly lower than than that recorded in 2012 at 14.5% recorded, due to increased volumes of cars sold in the year, "which by nature of their higher sales value and lower margin have the effect of reducing the overall margin," Lookers said.
During the period Lookers acquired a number of businesses including Chipperfield Land Rover, which operates a Land Rover dealership in Hertfordshire, for GBP10.5 million.
Financially net debt fell to GBP43.1 million from GBP48.2 million, while gearing dipped to 19% from 24%.
The company proposed a final dividend of 1.7 pence up from 1.55 pence, making a total dividend of 2.58 pence compared with 2.35 pence in 2012.
"The motor division has produced an excellent result and the parts division has returned to growth, delivering a strong performance in improving but competitive market conditions," Chief Executive Andy Bruce said in a statement. "Operational cash flow for the year was particularly positive, strengthening the balance sheet further."
The stock was trading at 134.25 pence Tuesday morning, 4.50 pence or 3.5%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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