Manchester car dealership group Lookers reveals resilient results
Manchester-based car dealership group Lookers has revealed a resilient set of results despite a tough market.
The group reported a decline in new car revenues of just four per cent in the first quarter of the year, despite a 12.4 per cent drop across the whole market.
Used car sales increased by an impressive eight per cent, with a six per cent increase in gross profit driven by a buoyant market for used car sales.
Aftersales revenue in aftersales was marginally ahead year on year with gross profit two per cent higher.
The group sold two properties under leaseback contracts bringing in £30m, which it said would fund its capital expenditure programme.
A spokesman for the group told the market: “The group has produced a positive financial performance for the first quarter of the year, against very strong prior year comparatives for the new car market and in an ongoing environment of subdued consumer confidence.
“There continues to be strong momentum in both our used car and aftersales businesses, demonstrating the resilience and diversity of the group’s business model.
“We have a strong balance sheet which continues to be supported by operational cash flow and our level of net debt to EBITDA has improved. We also have substantial headroom in our bank facilities which gives us flexibility and capacity to develop the business through further acquisitions at a time when there are significant consolidation opportunities within the sector.
“The financial performance of the group in the period demonstrates the effectiveness of our strategy of having the right brands in the right locations. The trading performance since March has been encouraging and we expect to make further positive progress during the year.”