Spare parts steer firm to profit

With motorists more inclined to focus on keeping their vehicles on the road in the present economic climate, the Manchester-based firm said its parts distribution division, including FPS, saw profits increase 21 per cent, to 5.2m.

Overall, group profits rose to 22.7m, from 17.6m last year, as turnover lifted 13 per cent, to 988.3m, in the six months to June 30.

The group said the record trading performance came against a background of difficult trading conditions and the end of the Government's scrappage scheme.

The parts division, which works with 2,500 suppliers through 20 UK sites, has helped to offset a tough new and used-car sales market.

The company's motor division, which consists of 122 franchise dealerships, saw profits increase to 18.5m, from 15.3m in 2009.

Lookers said the UK new car market had recovered strongly with registrations increasing by 20 per cent, to 1.1 million, in the six month period to June, compared with last year. However, the Society of Motor Manufacturers and Traders recently reported a fall in new car sales in July. The firm posted a 26 per cent increase in like-for-like new car sales to 32,469, which included cars sold under the scrappage scheme.

Looking ahead, the group said the strength of the parts division would help to reduce the financial impact of tough trading conditions in the market.