Lookers feels benefit of a reborn car market as profits set to soar

LOOKERS has become the latest British car dealer to forecast better than expected 2013 profits on the back of resurgent car sales in its home market.
Andy BruceAndy Bruce
Andy Bruce

The firm, which owns the Lookers, Taggarts and Charles Hurst brands, said retail new car sales rose 19 per cent in the last nine months, and used car volumes rose 20 per cent in the same period.

Rival dealers Pendragon and Inchcape have both forecast strong profit growth, as they benefit from the continued rise in car sales in Britain, which is bucking the negative trend across much of continental Europe.

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The Society of Motor Manufacturers and Traders, which represents Britain’s auto industry, has forecast sales of more than 2.2 million cars this year, eight percent higher than last year. Last month’s 12.1 per cent rise was the 19th straight month of increased sales.

Lookers said its aftersales business had increased year-on-year turnover and its parts division had returned to growth.

The company’s chief executive Peter Jones said its 2013 results would be “significantly ahead of current market expectations” and that “further recovery in the UK new car market provides a positive environment for further growth”.

FPS, Lookers’ parts distribution business, which employs more than 900 people across 22 sites in the UK, has its main hub in Sheffield where it employs more than 200 people.

The site recently had a £1m investment.

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Lookers Leasing and Group Fleet, which are both based in Harrogate, employs 14 staff and 10 staff respectively.

Andy Bruce, the chief operating officer, is due to take the role of CEO in January when Mr Jones steps down.

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