Record profits for car giant
MANCHESTER-BASED car dealership group Lookers has posted record profits for eighth year.
Revenue for the year to the end of December 2016, increased 17 per cent to £4.3bn while pre-tax profit rose by 46 per cent to £91.8m, including an exceptional profit of £28m on sale of the parts division.
Adjusted pre-tax profit increased 7 per cent to £77.1m and adjusted operating profit increased 10 per cent to £94.7m.
During that period the company’s acquisitions of Knights BMW/MINI and Drayton Mercedes-Benz were completedand both are now successfully integrated. It also disposed of 10 underperforming dealerships.
Chief executive Andy Bruce said: “I am pleased to announce an excellent set of year end results.
“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.”
The proposed final dividend of 2.36p per share takes the total dividend per share to 3.64p - up 17 per cent.
Lookers’ motor division consists of 160 franchised dealerships representing 33 marques from 102 locations. The business generates revenue from the sale of new and used cars, vans and aftersales activities.
We will be making more acquisitions Andy Bruce