Eight years of growth for Lookers as profit before tax climbs to £91.8m

10:45 am, March 8, 2017

LOOKERS enjoyed its eighth successive year of turnover and profit growth in 2016.

The company, which has more than 160 franchise dealerships across the UK representing 31 different manufacturers, reported profit before tax of £91.8 million for 2016 – up 46 per cent on the previous year. The figure was enhanced by an exponential profit of £28m from the sale of its parts division in November.

Adjusted profit before tax increased seven per cent to £77.1 million (2015: £72.1 million) and adjusted operating profit increased 10 per cent to £94.7 million (2015: £85.9 million).

Earnings per share were up 59.2 per cent at 20.51p (2015: 12.88p) with adjusted earnings per share up four per cent at 15.87p (2015: 15.24p).

The company certainly had a busy time of it in 2016 and reported this morning that after the acquisition of Knights BMW/Mini and Drayton Mercedes-Benz, the companies had been successfully integrated into its operation.

Looking ahead, Lookers said it was planning further organic growth with more acquisitions and that it aimed to be at the heart of industry consolidation. The firm continues to expand in the ‘customer experience’, with the launch of a new website planned for later this year.

And it said that the current financial year had got off to a good start, with a healthy order book for the important month of March.

Andy Bruce, Lookers chief executive, described the company’s year-end figures as ‘an excellent set of results’

He added: ‘Our profit is at record levels and has increased for the eighth consecutive year – evidence of both an expansive and a resilient business model.

‘We know our strategy of having the right brands in the right locations and excellent execution is the right one – and during the year we’ve managed our portfolio of dealerships to reflect that.

‘Generating shareholder value through acquisitions is one of the things we do best. We will be making more acquisitions and have the balance sheet strength to do so.

‘We’ve made a good start to the current financial year and have a healthy order book for the delivery of new cars in the important month of March. Our strategy of acting as a consolidator – and growing organically – leaves us ideally placed for growth and increased earnings in 2017 and beyond.’