Interim Management Statement

RNS Number : 6345B

Lookers PLC

30 October 2009

 



30 October 2009

LOOKERS plc

INTERIM MANAGEMENT STATEMENT

Lookers plc, a leading UK motor retail group, is issuing an interim management statement for the period from 1 July 2009 to 29 October 2009.

The strong trading performance delivered in the first half of the year has continued and we are pleased to report that trading during the quarter ended 30 September 2009 and particularly during the critical month of September, has remained strong. Consequently Group results for this period are significantly ahead of both budget and the prior year.

The UK market for new cars continues to be challenging and has fallen by 15% year on year to 30 September. Despite this, like-for-like new car sales are 11% ahead of the market with sales under the Government scrappage scheme and corporate sales helping the Group outperform the market.

Used car volumes and margins have been maintained at high levels, which have offset the weaker performance in new car profits during the nine month period. Our franchise aftersales revenue is showing good growth, up 3% and gaining market share in a declining market. 

Our independent parts division continues to go from strength to strength, again achieving record results, with all three divisions of the business significantly ahead of last year. These factors, together with lower interest costs, following significant reductions in working capital, have helped to deliver a very satisfactory trading result for the period.

OUTLOOK

As a consequence of this strong trading performance, we are very confident with the outlook for the rest of the financial year to 31 December 2009. Whilst economic conditions remain uncertain, this year will continue to be challenging for the underlying new car market. However, the Group's diversified business model and market leading parts division, together with the actions that have been successfully completed in the Motor Division to reduce costs, leave us well positioned to trade through this difficult environment. 

We continue to focus on areas where we can improve the performance of the Group's franchise outlets and continue to explore incremental product opportunities for the parts business.

The successful equity raising in July has strengthened our balance sheet and provided the Group with greater flexibility so that it is well placed to take advantage of opportunities which may arise and to emerge from the current downturn a stronger and more efficient business. 

 Commenting on the statement, Peter Jones, Chief Executive, said

"We are pleased with the strong trading performance for the third quarter following the excellent result for the first half of the year which was delivered in a difficult market.

Economic conditions remain uncertain and we believe trading will continue to be challenging for the new car market. However, we anticipate used car volumes and margins will be maintained at current levels. Our market leading parts division is performing at record levels and our dealership aftersales business is trading well. These factors, together with our strengthened balance sheet, give us confidence that we will continue to trade successfully in the current economic climate and be able to take advantage of selective 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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