MOTOR dealership Lookers expects its full year results to beat forecasts, it said in a year end trading update today.
A strong performance in the first nine months of the year was followed by another good final quarter and the company said: “We are pleased to report that trading during the quarter ended December 31 has continued to be in excess of both budget and the prior year.
“Consequently, we expect group results for the full year to exceed management expectations.”
The group’s independent parts division played a key role in this year’s over-performance, while new car sales in the motor division eclipsed the rest of the UK car retail market with a 3.8% gain in like-for-like sales on 2009 levels, compared with a 5.6% overall market decline.
Used car sales also rallied in the second half of the year to ensure total sales recovered to 2009 levels.
And aftersales in the motor division continued its strong performance.
Lookers trades from more than 100 dealerships, including around 20 in the Merseyside and Cheshire region.
However, it closed or sold seven underperforming dealerships as it continues to refine its franchise portfolio.
The cash will be used to generate new business opportunities.
Looking ahead, the group recognises economic conditions will reflect the current fragile consumer confidence, but it added: “The aftersales bias to the motor division and the group’s strong performance during the past two years demonstrate the strength of the business and leave us well positioned for future growth.”
And it confirmed its expansion plans include targeted acquisitions based on a strong balance sheet and “substantial headroom in our bank facilities”.
Liverpool stockbroker Panmure Gordon said today: “The business appears to be outperforming on all fronts, with cash generation remaining strong as working capital continues to be tightly managed.
“We maintain our forecasts for 2010 but expect small upgrades elsewhere to catch up, while 2011 forecasts also remain unchanged assuming modest growth, despite the uncertain consumer environment that remains.”
