Record Q3 results for Lookers 30 | 10 | 2012
LOOKERS, OWNERS OF SCOTTISH groups Taggarts and Lomond Motors, has reported a record trading performance in the three months to Octover 29 with new car sales up 11% and used car volumes up 12%.
The company — which expanded in July when it purchased the Lomond Audi network of dealerships in Glasgow, Edinburgh, Stirling and Ayr — also saw car margins increased.
At the same time, Lookers reduced its fleet volumes by 18% primarily due to a specific low margin fleet deal in 2011 which was not repeated this year.
The company also detailed the fact its aftersales performance was flat and the group experienced a “small erosion” in gross margins in Q3.
The business said the performance was down to its strong focus on used car pricing, stock management and continued investment in its internet and social media marketing.
Parts volumes were up in Q3 and gross margins reduced slightly, but Lookers said its control of overheads helped to reduce the impact on profitability in the division.
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Lookers raised £5.6 million in the nine months to September 30 through the sale of surplus assets, and the group has repaid £3.75 million of bank loans in this period.
As a result of the purchase of Lomond Motors, and Northern Irish contract hire company Fleet Financial, net debt is at a higher level than last year.
However, Lookers believes these recent acquisitions will add a “significant contribution” to the motor division. The group is still acquisitive in both its motor and parts divisions.
While economic conditions continue to affect consumer confidence, restricting recovery in the new and used retail sectors, we continue to improve the operational and financial performance of the group," Lookers said in its interim statement.
“The aftersales bias to the business and our strong performance over the last three years, demonstrates the ability of the group to perform well in a challenging market. We therefore continue to anticipate that the results for the financial year to December 31, 2012 will be in line with management expectations.”
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Jim McGill