Historical Stock Chart
6 Months : From Mar 2019 to Sep 2019
RNS Number : 6748A
31 May 2019
31 May 2019
AGM TRADING UPDATE
Outperforming the new car market and continued momentum in used cars and aftersales
At the AGM of Lookers plc, ("Lookers" or "the Group"), one of the leading UK motor retail and aftersales service groups, to be held later today, Phil White, Chairman, will provide the following trading update for its first quarter, covering the three months ended 31 March 2019 ("the period").
The trading performance in the quarter was positive with a strong result during the important month of March.
New car market
New cars represent 32% of gross profit for the Group. Total new car registrations in the UK reduced by 2.4% to 701,036 cars in the first quarter; current industry forecasts by The Society of Motor Manufacturers & Traders (SMMT) for the current year are now at 2.3m. Whilst this is a reduction of 2.3% compared to last year, it remains at a relatively high level of registrations compared to historic levels.
Against this background, the Group has produced positive results in the period:
-- Turnover of new cars increased by 3%, ahead of the total market reduction;
-- Total gross profit from new cars increased by 4% with a modest increase in profit per unit;
-- On a like for like basis, both turnover and gross profit were maintained at a similar level to last year.
Used car market
The used car market continues to be buoyant and values of used cars remained stable in the period. Used cars contribute 25% of total gross profit and the Group produced the following results in the period:
-- Turnover of used cars increased by 8%;
-- Gross profit from used cars improved during the period with profit per unit being maintained at previous levels, resulting in an increase of 2% compared to the prior year;
-- On a like for like basis, turnover increased by 6% and gross profit increased by 1%.
Our higher margin aftersales business, which represents 39% of total gross profit, has performed well in the period:
-- Turnover of aftersales 11% higher than the prior year;
-- Gross profit increased by 9% at a slightly lower margin;
-- On a like for like basis, turnover increased by 9% and gross profit increased by 6%.
Summary and Outlook
The Group has delivered a positive performance over the first quarter with continued strong momentum in both our used car and aftersales businesses, demonstrating the resilience and diversity of the Group's business model, despite the continued political uncertainty.
We have a strong balance sheet, giving us the capacity to consider selective strategic acquisition opportunities and to continue to invest in upgrading our facilities and enhance our multichannel customer capabilities.
The financial performance of the Group in the period demonstrates the effectiveness of our strategy of having the right brands in the right locations and the trading performance since March has been satisfactory in the light of current trading conditions.
Lookers Tel: 0161 291 0043
Andy Bruce, Chief Executive Officer
Robin Gregson, Chief Financial Officer
MHP Communications Tel: 0203 128 8789
Tim Rowntree Email: Lookers@mhpc.com
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(END) Dow Jones Newswires
May 31, 2019 02:00 ET (06:00 GMT)