Interim Management Statement

RNS Number : 3727F

Lookers PLC

12 January 2010

 



12 January 2010

Lookers plc

Interim Management Statement

Lookers plc, one of the leading UK Motor Retail and Aftersales Services Groups, is issuing a trading  statement for the period 1 October 2009 to 31 December 2009, which is also the end of the Company's financial year.

Following a strong trading performance in the first nine months of the year, we are pleased to report that trading during the quarter ended 31 December 2009 has remained ahead of budget and prior year. Consequently, we expect Group results for the full year to exceed consensus market expectations.

Our independent Parts Division, which provides a significant contribution to Group earnings, continues to deliver further improvements in profitability and will achieve a record result for the year, with each of the three subdivisions of this business significantly ahead of both budget and last year.

In the Motor Division we gained new car market share with like for like sales for the year closing 13%  ahead of 2008 levels in a new car market that closed the year 6% down on 2008, despite the 280,000 unit registration boost derived from the Government's scrappage scheme.

Used car sales remained strong with full year volumes up 6% on 2008 levels on a like for like basis,  increasing our share of the used car market. 

Motor Division Aftersales have delivered strong results and have benefited from a combination of the  consolidation in dealership representation in the UK, a trend which we anticipate may continue during 2010 and the managed restructuring of market areas and franchise representation within our dealership portfolio. Both these factors have increased aftersales revenue and profitability per site, further strengthening our share of the Aftersales market.

The strong operating performance together with lower interest costs, following significant reductions in working capital and the actions that have been successfully completed to reduce costs, will ensure that the Motor Division's results for the year will be extremely positive.

Outlook

As a consequence of both divisions delivering strong trading performances we are very confident that the outlook for the financial year to 31 December 2009 will exceed consensus market expectations. Whilst economic conditions remain uncertain, our strong performance in 2009 demonstrates the resilience of the Group's diversified business model and leaves us well positioned to continue to trade successfully.

We continue to focus on areas where we can improve the performance of the Group's franchised outlets and continue to add incremental product lines to the parts business.

The successful equity raising in July has strengthened the Group's balance sheet providing greater flexibility to ensure that we are well placed and focussed to take advantage of strategic growth  opportunities that may arise and we are confident that the Company will emerge from the current downturn a stronger and more efficient business which is well placed to deliver future growth.

Commenting on the statement Peter Jones, Chief Executive said:

 "Despite the difficult market conditions we expect to deliver a record trading performance for the company in 2009. We believe that market conditions will remain challenging in 2010. Nevertheless, the strong performance from both the Parts and Motor Divisions, supported by our strengthened balance sheet and reduced cost base, gives us confidence that we will continue to trade successfully through the period, 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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