Interim Management Statement

RNS Number : 9948G

Lookers PLC

30 October 2008

 



30 October 2008

LOOKERS plc

INTERIM MANAGEMENT STATEMENT

Lookers plc, one of the UK's leading motor retail groups, is issuing an interim management statement for the period from 1 July 2008 to 29 October 2008.

The Company stated at the time of the announcement of its interim results on 27 August 2008 'that the more turbulent macroeconomic environment has resulted in challenging trading conditions across the UK new and used car markets'.

Trading through the critical month of September continued to be challenging with the Society of Motor Manufacturers & Traders reporting a downturn of 21% in the national new car market, resulting in a fall of 19% for the third quarter. Against this background, Lookers experienced a similar decline over the period in new car sales, despite the Northern Ireland market continuing to underperform the national market. 

Nevertheless, Lookers' diversified business model gives it more flexibility to adapt to this environment and exploit opportunities in the more stable aftersales business streams.   The aftersales markets we serve, including parts distribution and service, have continued to trade strongly throughout the third quarter.

Lookers continues to focus on areas in which it can improve the performance of its franchise outlets. These include removing the fixed costs of marginal satellite operations and redirecting volume back to main hubs, reviewing dual franchising opportunities where the facilities are larger than the market opportunity, exiting underperforming businesses and reducing the cost base and investment in working capital. 

The Group remains cash generative. Net debt at 30 September was in line with expectations for a plate change month and we have adequate banking facilities in place for the medium term.

Ken Surgenor, Chief Executive, said: 'Trading conditions are currently very difficult and the outlook for the industry for the remainder of the year remains challenging. However, we have a strong presence in aftersales and a proven management team with huge experience of successfully trading through previous market slowdowns. We continue to maintain our long standing focus on driving operational excellence and efficiency and to take action where appropriate for the long term benefit of the Company.'

For further information:

Lookers plc	Telephone: [phone]
Ken Surgenor, Chief Executive
David Dyson, Finance Director
Hudson Sandler	Telephone: [phone]
Andrew Hayes / Nick Lyon / Kate Hough

 

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