Taggarts' owners hit £1 billon 17 | 08 | 2011
LOOKERS, THE CAR dealership group which owns Scottish brand Taggarts, has hit the £1 billion turnover mark at its half-year point following 1.4% growth in sales on last year. The franchised dealer also maintained profitability with a £21.3m pre-tax profit, down just a fraction on 2010’s £21.4m at the same point.
The firm has leant heavily on its parts and after-sales business to weather the impact of the economic downturn on new car sales.
Lookers, which operates 124 showrooms selling marques such as Ford, Vauxhall, Nissan and Toyota, has had to cope with a new car market that has fallen by 18%in the first six months of 2011.
Chairman Phil White described the results as “a significant achievement” against a backdrop of difficult conditions in the motor retail market and uncertain general economic conditions. He said the encouraging first half performance leaves Lookers confident of a successful full year result.
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Lookers' motor division, which comprises 119 franchised dealerships, saw new retail car sales fall but stay 5.4% ahead of the sector’s 18.1% national decline, indicating a continued increase in market share to 4.04%.
It took a 1.79% share of the fleet sector, after slightly reducing its activity in the corporate sector, which has grown 3.1% nationally, to avoid very low margin deals.
However it saw gross profit levels maintained on retail cars and improved on fleet sales.
Used car volumes have grown by 5% on 2010 levels, although gross margins dipped by 3.4%, and White said this area remains a huge opportunity for the group.
Overall the motor division maintained adjusted profit before tax at the same level as last year at £18.5m.
The period also saw Lookers close or sell five underperforming dealerships while adding three other businesses, two of which were additional franchises on existing sites.
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Mark Stephens