There've been no offers, says Lookers

Chief executive Peter Jones also said yesterday that the group, whose shares have been boosted recently by bid speculation, had not received any offers.

"We have had no offer into the board whatsoever," he said, when asked about media reports a private equity firm was considering a bid of about 95 pence a share.

"I think one or two people have looked at the group and recognised the inher- ent value of it," he said, pointing to its property assets and rising profits despite challenging mar- kets.

Lookers said market conditions would stay tough as the government hikes taxes and cuts spending to reduce the deficit, but its performance gave it confidence of coping 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.

Mr Jones said Lookers was particularly keen to try to add the BMW franchise.

He also said he was comfortable with analysts raising their 2010 profit expectations to 33.5m-34m from around 32m.

"Given that over 65 per cent of profits are derived from aftersales and parts and distribution we believe that Lookers has the highest quality earnings in the sector and deserves a premium rating versus its peers," said Brewin Dolphin analyst Michael Vassallo.