Lookers posts doubling in profit

CAR dealer Lookers posted a doubling in annual profit, driven by its car parts business, and said 2010 had started ahead of plan and it would return to paying a dividend later this year.

The firm, which sells cars from manufacturers like Ford, Nissan and Vauxhall from over 120 outlets, said market conditions would remain tough, with the Government due to end an incentive scheme for buying new cars later this month.

However, after cutting costs and seeing strong performance in its car parts and used-car businesses, it was confident of coping.

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"The new year has started well with current trading being ahead of both our budget and the prior year," it said.

Profit before tax, goodwill and one-off items jumped 102 per cent to 28.3m in 2009 on a 4.2 per cent rise in like-for-like revenues to 1.75bn.

That was just ahead of analysts' average profit forecast of 28m.

Lookers, which raised around 80m in a share sale last year to cut its debts, said it planned to return to paying a dividend later this year.

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Rival Pendragon last month reported a return to profit in 2009 after a loss the year before.

Another competitor, Inchcape publishes 2009 results on Wednesday.

Lookers shares, which have performed over twice as well as the UK general retail index over the past year, closed at 56p on Monday, valuing the business at about 212m.