THE chief executive of Lookers has welcomed the company’s ‘excellent’ results for the first half of 2016.
Lookers, one of the UK’s leading motor retail groups, reported this morning that revenue increased by 33 per cent to £2.34bn for the period January to June, leading to a 20 per cent increase in the interim dividend and leaving the company well positioned for future growth.
Net debt has been significantly reduced to £74.9 million and there has been ‘a continued investment in the customer experience’, the company said.
Today’s announcement said there was a healthy order book for the delivery of new cars for the upcoming plate change, and added that since the end of June, Lookers has announced the conditional sale of its parts division and the acquisition of Drayton Motor Group.
Lookers CEO Andy Bruce said: ‘I am pleased to announce an excellent set of results for the first half of the year.
‘We have worked hard at pursuing the strategic priorities for the business which we laid out in March: having the right brands and locations alongside excellent execution.
‘Through careful portfolio management and a focus on delivering the best service for our customers, our motor division has continued to grow strongly and has delivered record results. The parts division has also performed well.
‘Since the period end, we have also announced the conditional sale of the group’s parts division, an attractive offer which we believe allows us to concentrate on what we do best; focusing on our motor division to buy and sell cars, and add value through acquisitions.
‘The sale of the parts division is a great opportunity to shift our strategy and to focus on the higher growth division of the business. We are delighted to have already announced the acquisition of Drayton Motor Group, which we believe fits our acquisition criteria of selecting excellent businesses which will be of strong financial and cultural benefit to the group.’
Reacting to the figures, the investment bankers and City analysts Zeus Capital said Lookers’ shares represented good value at present.
Zeus added: ‘Given the strength of the balance sheet and management track record, we believe they are well positioned to continue to acquire businesses at a time in the cycle where there may be opportunities to acquire businesses at good value.’
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