Trading Update

RNS Number : 9366O

Lookers PLC

07 July 2010

 



Lookers plc

Trading update

Lookers plc, one of the leading UK Motor Retail and Aftersales Services Groups, is issuing a trading statement for the period from 11 May 2010 to 30 June 2010, which is the end of the company's interim financial period.

The Group is pleased to report that trading to the end of June is ahead of budget and the same period in the prior year, and that we expect Group results for the half year to 30 June 2010 to exceed management's expectations.

All Group divisions are currently performing ahead of plan, with the independent Parts Division continuing to deliver record results. The Motor Division has continued to deliver trading results ahead of budget and the prior year and has benefited from new vehicle volume sales growth in excess of the 20% market increase.  Although used car sales and aftersales were affected for a short period in January by the adverse weather, trading continues to be at encouraging levels.

The combination of the positive performances in the operating divisions, combined with efficiencies and a reduction in central costs will, we believe, underpin a strong result for the half year.

The financial results for the six months to 30 June 2010 are expected to be announced on 18 August 2010.

Outlook

The new and used car retail markets are likely to continue to be affected whilst consumer confidence remains fragile, although the aftersales bias to our Motor Division helps to reduce this effect. There has been a continued recovery in the corporate new car market, which represents a continuing opportunity to improve our market share and there are further cost savings to deliver. We believe these factors will help to underpin a successful result for the year for the Motor Division.

Our independent parts distribution business remains a key differentiator for Lookers in the retail motor sector. It provides a counter cyclical hedge against economic challenges to the Motor Division, operates in the growing 4 year plus aftersales sector, and, given its significant contribution to overall results, we believe gives us a unique position of strength in the sector,

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

 "We believe the Group will deliver record results for the first half of the year, giving us confidence that we can continue to grow the business and deliver successful results for the full year, despite the economic challenges facing the UK retail sector.

The factors that created exceptional charges in 2009 are now behind us, ensuring that trading profits and cash flow are not eroded and further strengthening our balance sheet, thereby providing the flexibility to take advantage of growth opportunities where they occur."

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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