Flat profits for Lookers as new car sales weaken

17th Aug 2011 08:08

Car dealer Lookers posted flat profits in the half year to 30 June as tough economic conditions and the removal of the government's subsidy scheme battered the new car market.Pre-tax profits slipped to £21.3m from £21.4m on revenues that edged up to £1bn from £988m."Our motor division delivered strong results, despite the UK new car market having reduced by 7.1% in the first half of the year to 1.03m units and the new car retail market reduced by 18.1%, although volumes in 2010 were inflated by the government's scrappage scheme," chairman Phil White said.He said new and used car markets are likely to continue to be affected by tough economic conditions, but added that the company's aftersales activities (such as providing parts and servicing) will serve the company well.---RG