Lookers sees year results above its expectations

CAR dealer Lookers said 2010 results would beat its previous expectations after a strong third quarter driven by its car parts business as well as rising sales of new and used vehicles.

By The Newsroom

Published 29th Oct 2010, 10:34 BST

The Manchester-based business said that used car sales were eight per cent higher than in the third quarter last year, and continued to offer "satisfactory" margins, while its Yorkshire-based independent parts division continued to improve profits and is trading ahead of expectations.

The group, whose shares have been boosted recently by bid speculation, said market conditions remained challenging, but that its performance gave it confidence of coping heading into 2011.

"Our strong balance sheet and headroom in our bank facilities also enables us to pursue strategic acquisition opportunities in both the motor and parts divisions, which will help underpin growth in future years," it added.

Lookers' shares, which hit a one-year high of 64 pence on Wednesday, closed at 61 pence yesterday, valuing the business at about 232m.

Manchester Yorkshire