Lookers plc has released its preliminary results for 2014 showing record results and a £3 billion turnover.
The Group recorded a profit before tax of £65.0 million up on the £48.1million achieved in 2013. The motor division delivered an increase in profit before tax of 37% to £58.3 million, compared to £42.6 million last year. The group’s parts division clocked up an increase in profit before tax to £12.2 million compared to £11.8 million last year.
In his statement on the results Lookers plc Chief Executive, Andy Bruce, attributes the 2014 performance to: “a significant increase in new car retail sales at improved margins, further growth in used car volumes and margins, improvement in both aftersales turnover and margin, [and] growth in both turnover and profit in the parts division”
Bruce continued: “We have now had six successive years of increased profits, the majority of which were delivered in restrained market circumstances and it is only during 2014 that the UK new car market returned to what can be considered to be a normal level of activity. This growth has been encouraging and gives us further confidence in our ability to grow the business again in 2015.“
Lookers retail new car sales increased by 9.2% in 2014 against a UK market that was up 9.8%. Gross profit per unit on new retail cars increased by 4.6% over the same period. In its fleet business Lookers comfortably out performed the market with volumes increased by 14.1% against a UK market that rose by 8.9%.
The Group’s sales volumes of used cars increased by 4.4%, when compared on a like for like basis with 2013, while profit per unit in this business increased by 2.7%. Aftersales turnover increased by 5.3% on a like for like basis. Turnover for the Parts division increased by £8.4m, up 4% on the prior year. The division saw Profit before tax increased by 3.4% to £12.2 million compared to £11.8 million in the prior year.
Bruce commented that the Group had made a “good start” to 2015 concluding with a positive outlook for the year ahead: “The new car market is expected to show modest growth in 2015 and the used car market is stable. This, together with the group’s strong performance in 2014 and the previous five years, provide a firm foundation on which to deliver further growth in the current year.”
Lookers is a multi-franchise main dealer group with franchises for many car manufacturers ranging from volume marques to the prestige. The Lookers Group of car dealers in the UK consists of four main divisions: Lookers (located in England and Wales), Taggarts and the Lomond Group (located in Scotland), and Charles Hurst located in Northern Ireland. The motor division consists of 123 franchised dealerships representing 32 marques from 77 locations. The Group sells approximately 135,000 new and used cars per year.
