Lookers, the 120-franchise dealership group,
has reported a 3.1% year-on-year rise in revenue to £1.03bn in its
first-half report for 2012, with aftersales remaining ‘steady’.
Aftersales turnover was “consistent” with 2011
according to a statement issued by the company. Turnover in
aftersales in the motor division continued “on a like for like
basis with a small erosion in the gross margin compared to last
year.”
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Lookers said it was continuing to invest in
building sales value per customer visit and had “made a number of
improvements to our customer relationship marketing processes where
our conversion rates have significantly increased, along with a
lower cost per customer contact.”
Covering 32 marques across 69 sites, new
retail car sales for the group were up by 11%, above
the growth in UK new car sales and therefore increasing
Lookers’ market share. With gross profit per unit on new retail
cars up by 3.6%, Lookers’ motor division increased pre-tax profit
14.1% on the same period of 2011 to a company record of £21.1m.
Similarly, used car sales for the group
were up 11.1% by volume, with profit per unit up 9.5%.
Acquisitions, profit and
cashflow
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By GlobalDataSince January, Lookers has jettisoned
four businesses, added six franchise businesses and made three new
acquisitions,
including that of Lomond Motors Limited.
Profit before tax was up 9.4% to £23.3m,
and up 6.6% to £24.1m adjusted before amortising intangible assets
and debt issue costs, with net debt also reduced by £12.7m to
£26.8m.
Although cashflow from operations fell
to £32.6m (from £41.9m in 2011), and net cash inflow fell to £25.7m
(2011: £30.7m), it remained at a level to reduce gearing to
13%.
Peter Jones, chief executive at Lookers
said the results gave the company “confidence that we can continue
to grow the business, deliver satisfactory results for the full
year, increase our dividend payments and be in a strong position to
pursue strategic growth opportunities.”
richard.brown@vrlfinancialnews.com
