Lookers PLC Interim Management Statement (1174N)
14 May 2015 - 4:00PM
UK Regulatory
TIDMLOOK
RNS Number : 1174N
Lookers PLC
14 May 2015
14 May 2015
INTERIM MANAGEMENT STATEMENT
Lookers plc, ("Lookers" "the company" or "the group"), one of
the leading UK motor retail and aftersales service groups, issues
its interim management statement for the period from 1 January 2015
to 13 May 2015, which shows a strong performance in the period and
continued margin improvements in all areas of the business.
Unless otherwise stated, the figures in this statement relate to
the quarter ended 31 March 2015.
The company produced a strong trading performance in the quarter
to 31 March 2015, particularly during the important month of March
and the Board is very pleased to yet again report a record result
for the period. This positive result was a healthy improvement on
the corresponding period in 2014.
Our motor division delivered another creditable performance in
the period with gross profit from new retail cars increasing by 4%
and new car retail margins also ahead of the prior year. As
referred to in our 2014 annual report, we have recently increased
our focus and investment in the fleet sector where gross profit
from new fleet cars increased by 12% and margins were maintained at
a similar level to last year.
Gross profit from used cars increased again during the period
continuing the trend of recent years. Used car margins also
improved, resulting in an increase in gross profit of 10% compared
to the prior year. We continue to focus on stock management and
sourcing good quality used cars, both of which help improve volumes
and margins. A further factor which continues to improve used car
volumes is the increasing number of leads being generated from our
website, which has recently been significantly upgraded and which
will benefit from further major developments to continually enhance
our online presence.
As well as improving the margin, our aftersales business
increased turnover by 7% compared to 2014, benefitting from the
growth in the vehicle parc of cars under three years old. This
trend will continue due to the increase in the new car market over
the last three years. Gross profit from aftersales increased by 9%
compared to the prior year. The increase in volumes and margins is
also a result of the various initiatives that we have made in
recent years to develop the aftersales business, in particular the
increasing proportion of our customers who choose to enter into
service contracts, which continues to improve customer
retention.
Our independent parts division made good progress in the period
with increases in both turnover and profit before tax compared to
the prior year, against a background of an improving but
competitive market. Margins were maintained at a similar level to
the prior year and careful control of overheads resulted in a
satisfactory increase in profit before tax.
Cash flow continued to be strong during the period and was
significantly higher at both the operational and net cash flow
levels compared to budget, whilst the ratio of net debt to EBITDA
remains well below 1.0. With low gearing and high levels of
unutilised bank facilities, the group has a significant amount of
additional funding capacity.
Outlook
The group has made a good start to the year with excellent
results for the first quarter from both the motor and parts
divisions. The balance sheet continues to be strengthened by strong
operational cash flow and positive working capital management and
we have substantial headroom in our bank facilities. This provides
financial security as well as funding capacity to help develop the
business through further strategic acquisitions in both the motor
and parts divisions.
The financial performance of the group in the three month period
builds on what was already a strong comparative in the previous
year. We therefore believe that the results for the year ending 31
December 2015 should be in line with current market
expectations.
For further information:
Lookers plc Telephone: 0161 291
0043
Andy Bruce, Chief Executive
Robin Gregson, Finance
Director
Tavistock Communications Telephone: 020 7920
3150
Keeley Clarke, Emma
Blinkhorn,
Matt Ridsdale
This information is provided by RNS
The company news service from the London Stock Exchange
END
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