CAR dealership Lookers said its annual results will beat expectations, in a trading update today.
The firm, which has more than 20 dealerships across Merseyside and Cheshire, said the strong trading performance in the first half of the year has continued into the third quarter.
In an update covering July 1 to October 28 it said the parts division, which makes a “significant contribution” to group revenues, continued to deliver further improvements in profits and is trading ahead of management forecasts and comparison with the previous year.
The motor division is also trading ahead of budget and last year’s levels and achieved new vehicle sales ahead of the UK new car market average of 7.8%.
Used car sales rose by 8% in the third quarter, to September 30, while aftersales revenue in the motor division was 2% ahead, compared with an overall market which shows decline.
The company said it had closed or sold five underperforming businesses and the cash raised will be invested in new business opportunities.
Despite uncertainty in the new and used car markets caused by fragile consumer confidence, Lookers said its aftersales division will provide opportunities for future growth.
The “excellent results” from both parts and motor divisions are the basis for the group’s confidence that its results for the year ending December 31 “should exceed management expectations”.
Chief executive Peter Jones said today: “We are pleased with the strong trading performance in the third quarter, which follows the excellent result for the first half of the year.
“While market conditions remain challenging, the strong performance from both the parts and motor divisions, combined with our reduced cost base and strengthened balance sheet, give us confidence that we will continue to trade successfully for the rest of the year and be able to take advantage of growth opportunities which may arise in 2011 and beyond.”
Liverpool stockbroker Panmure Gordon upgraded its earnings per share forecasts, which were already ahead of consensus, by 3% on the back of today’s announcement, adding that “the shares remain in ‘Buy’ territory for now.”
