12th Aug 2015 07:01
LONDON (Alliance News) - Vehicle retailer and aftersales services provider Lookers PLC on Wednesday said its pretax profit and revenue both rose in the first half of 2015, prompting it to hike its dividend, and said it anticipates it will slightly outpace market expectations for the full year.
Lookers said its robust performance in the first half came against an already tough comparator in 2015 and said it is confident it will make further progress in the second half and will deliver results slightly ahead of market expectations.
Pretax profit for the group was up to GBP39.9 million from GBP37.7 million in the half, up 6% on a year earlier, on the back of a 9% rise in revenue to GBP1.75 billion from GBP1.60 billion.
Lookers said it saw a record performance from its motor division in the half, with programmes made in car volumes and margins in both its new and used franchises, along with revenue and margin progressions in its aftersales business. It was also boosted by further enquiries through its web offering, following investments made in this sales channel, along with growth in its aftermarket parts division.
Lookers said it would hike its interim dividend by 10% on the news, up to 1.07 pence per share from 0.97p a year earlier.
"We have delivered a strong trading performance in the first half of the year which is another record result and the seventh successive year of improved profitability. Both the motor and parts divisions have produced excellent results with improved cash flow for the period, further strengthening our balance sheet," said Andy Bruce, Lookers' chief executive.
"We are well placed to take advantage of growth prospects across all areas of the business as well as consolidation opportunities in the sector. This gives us confidence that we can continue to grow and deliver improved results for the full year," Bruce added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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