Lookers reports profits drop

Aug 28 2008 by Alex Turner, Liverpool Daily Post

FALLING new and used car sales caused a 28% drop in first-half profits at car dealership group Lookers.

The firm, which has 16 dealerships in Merseyside and Cheshire, yesterday announced an adjusted pre-tax profit of £15.5m to June 30, which slightly exceeded analysts’ expectations.

The market responded positively to the figures with Lookers’ shares rising nearly 6% to 53p.

Like-for-like new and used car sales were down 6.5% and 5% respectively during the first half of 2008 with trade deteriorating markedly in May and June.

Lookers also said trading had remained challenging and it anticipates its full-year results to be at the lower end of market expectations.

The group said buyers were switching to cheaper and more fuel-efficient vehicles to combat rising fuel and road duty costs.

Land Rover sales fell 11%, a decline mirrored across other top of the range models, while sales of smaller cars like the Toyota Aygo were up more than 30%.

Lookers’ first half sales were £1.04bn, compared with £878.9m last year. This mainly reflects the acquisition of Dutton Forshaw last October.