Lookers sales rev up despite profit fall

L Motor retailer highlights doubledigit increase in sales of used cars

our expectations and whilst the new car market for this year is forecast to reduce, it is still at a historically high level. We expect to make further progress over 2018 with good momentum in used cars and aftersales and a resilient performance in new cars.”

The firm cautioned that the current Brexit uncertainty and weak pound was “unhelpful” to the under-pressure car market.

“We also have to remain aware of consumer confidence levels and the poundeuro exchange rate, both of which could have an impact on our business, so we continue to plan prudently for the business, mindful of these external factors,” it said.

Analysts at Numis Securities said Lookers has managed “steady growth in a tough market”. They noted: “FY17 profit before tax showed steady progress but was circa £6m short of consensus forecasts due to restructuring costs taken above the line and a tough Q4 in new cars.

“The group’s market position and execution continue to strengthen, while its liquidity remains very robust. We view the shares as good value relative to the peer group and on an absolute basis, but recognise that sentiment towards the sub-sector may not improve in the near term.”