Motor dealership on route to a record

The Manchester-based company said its parts distribution business, which works with 2,500 suppliers through 20 UK sites, had given it a "unique position of strength".

The division is providing a "counter cyclical hedge" against a tough wider market as drivers look to keep cars on the road rather than buying another vehicle, Lookers said.

"The new and used car retail markets are likely to continue to be affected while consumer confidence remains fragile, although the aftersales bias to our motor division helps to reduce this effect," it said.

Lookers, which has 5,500 staff and 122 franchised dealerships selling 32 marques, including Vauxhall and Ford, added that all parts of the group were trading ahead of plan during the first half of the year despite disruption from January's snow.

Sales volumes of new cars have grown ahead of the 20 per cent increase seen across the wider market while there has also been a "continued recovery" in demand for new corporate cars – giving Lookers a chance to improve its market share further.

Analysts have lifted pre-tax profits forecasts for the year as a whole to 31.8m – up from the 28.3m seen in 2009 – despite the end of the Government's cash-for-bangers scheme which propped up the car market during the worst of the recession

Numis analyst Nick Coulter said Lookers had "reaffirmed the momentum within its new car and independent parts businesses".

He added: "The independent parts business continues to go from strength to strength. We believe the division has sustained its double-digit, top-line growth rate, with profits growing ahead of sales."