07 March 2018

Lookers has revealed improved results in its 2017 full-year accounts despite what it describes as “challenging trading conditions”.

Turnover for the auto retail group was up 15% to £4.7 billion in 2017 with an adjusted profit before tax figure of £68.4 million, up 5% on 2016’s £64.9m. Adjusted operating profit was up 3% to £84.7m. The overall profit before tax figure was down 27% to £58.4m “largely” as a result of the £28m sale of its parts division in 2016.

However, Lookers reported a drop in its operating margin with 2017’s figure at 1.8%, down from 2.0% in 2016.

Andy Bruce, chief executive of Lookers, said: “We have delivered a robust set of results with good growth across all areas of the business, demonstrating the resilience and differentiation provided by the Lookers business model. Against a backdrop of a 5.6% dip in the new car market, we have seen strong momentum in used cars and aftersales.

“We have made good progress with our strategy over the year and remain focused on having the right brands in the right locations, combined with excellent execution that gives our customers a personal, relevant and multi-channel retail experience. We have managed our portfolio of dealerships to reflect this goal and our franchise representation is well positioned for the future.”

Lookers pointed out that new car turnover was up 3% on a like-for-like basis against a reduction in the overall market. During the year, Lookers sold 104,331 new cars. Used car turnover was also up with a 13% like-for-like rise.

Looking ahead Mr Bruce said: “The order book for new cars in the important month of March is in line with our expectations and whilst the new car market for this year is forecast to reduce, it is still at a historically high level. We expect to make further progress over 2018 with good momentum in used cars and aftersales and a resilient performance in new cars.”

Tags: Lookers