Interim Management Statement

RNS Number : 6631L

Lookers PLC

11 May 2010

 



11 May 2010

Lookers plc

Interim Management Statement

Lookers plc, one of the leading UK Motor Retail and Aftersales Services Groups, is today issuing an IMS for the period 1 January 2010 to 10 May 2010.

Following the record result for the 2009 financial year we are pleased to report that our trading performance for the four months ended 30 April 2010 is ahead of budget and prior year and the group is continuing to produce record results. Consequently, we expect Group results for the half year to 30 June 2010 to exceed management expectations.

Our market leading independent Parts Division, which continues to make a significant contribution to Group earnings, has delivered further improvements in profitability and is trading ahead of management expectations and last year.

In the Motor Division, new car sales increased by 23% compared to the same period last year and are in line with the UK market. However, we have increased retail and corporate market share, if sales are adjusted for the scrappage scheme and new car margins have also improved over the level achieved in the first four months of 2009. We continue to make further progress in refining our franchise portfolio and are currently adding an incremental five franchises into our current site infrastructure, further strengthening our business base.

Despite the poor weather in January, used car volumes have recovered to 2009 levels and unit margins remain consistent with last year, delivering continuing robust results.

Aftersales in the Motor Division have continued to deliver strong results and operating profit from this important part of our business is ahead of management expectations and last year.

The strong operating performance across all activities within the Motor Division, combined with a continued focus on costs has secured an excellent start to the year and represents further progress in a period of economic uncertainty.

We continue to focus on working capital management and operating cashflow has exceeded management expectations with the consequence that net debt is well controlled and we have significant levels of unutilised bank facilities.

Outlook

Both operating divisions have made an excellent start to the year which gives us confidence that the result for the half year should exceed management expectations.

The underlying new car market is likely to be challenging as a result of general economic conditions, however, the aftersales bias to the business, combined with the strong performance in 2009 and the record start to the year, demonstrates the strength of the Group's business and leaves us well positioned to continue to trade successfully and deliver further growth.

We continue to focus on areas where we can further strengthen the performance of the Group's franchises. The parts business has benefited from the addition of new product lines and continues to review further opportunities to expand the business. Our strengthened balance sheet enables us to pursue selective acquisition opportunities and we are therefore confident that the group is in a strong position to make further progress in 2010 and beyond.

Commenting on the statement Peter Jones, Chief Executive said:

 "Whilst market conditions remain challenging we are very pleased with the excellent start to the year. Both the Parts and Motor Divisions have produced record trading results in the period and this gives us confidence that we will continue to trade successfully this year and be in a position to pursue strategic growth opportunities as they arise"

For further information:

Lookers plc	Telephone: [phone]
Peter Jones, Chief Executive
Robin Gregson, Finance Director
Hudson Sandler	Telephone [phone]
Nick Lyon / Kate Hough

 

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