Private buyers throw off the recession to help drive up profits at Lookers

BRITONS defying the downturn by returning to car showrooms helped dealership Lookers hit record profits of £24.1m.

The group, which has 120 franchise dealerships representing 32 marques at 69 sites, said the number of new and used cars it sold to private buyers increased by 11 per cent in the first half of 2012 as its motor division put in an “excellent” performance.

The Manchester-based firm grew its share of a resurgent private new car market, which grew 8.7 per cent as private buyers shrugged off austerity Britain as brands such as Audi and LandRover proved popular in recent months, although sales to businesses declined. In its used car division gross profits increased nearly 10 per cent as it grew share of the market with the help of internet activities, such as using Facebook, which was behind a 40 per cent increase in enquiries.

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Underlying profits rose 6.6 per cent to £24.1m in the period, driven by a record performance in its motor division, while revenues rose 3 per cent to £1bn. But sales through its parts division fell slightly as consumers deferred maintenance on non-essential items in the tough economic climate.

Shares rose 2.62 per cent yesterday, building on the 30 per cent increase since the start of 2012.

Chief executive Peter Jones said despite the recent encouraging figures, the new car market is still down about 20 per cent since the financial crisis started and the group had improved its share of both the new and used mar- kets.

He said: “We have made profit gains over the last four years at a time when the market has been at its worst since the mid-1990s.

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“There are a lot of great deals from manufacturers about at the moment and now is a great time to buy a new car.”

Lookers has ‘Lookers Leasing’ in Harrogate, a parts distributor in Sheffield, and a golf and turf machinery business in Wakefield.

It also has a Volkswagen dealership in Northallerton and two Ford Dealerships in Sheffield.

Yorkshire businessman Tony Bramall, the former chairman of Harrogate-based CD Bramall, is a non-executive director and major shareholder in the company.

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Numis analyst Matthew Taylor hiked his full-year pre-tax profits forecast by £500,000 to £35.7m, which would represent a 6 per cent increase on 2011.

Shares closed last night at 68.50p, an increase of 1.75p.