Lookers axes divi as profit, sales fall

19th Aug 2009 07:34

Car dealer Lookers revealed a 34% decline in half year pre-tax profit but said it is well positioned to trade through a challenging car market.Lookers, which raised £80.7m in equity earlier this year, said pre-tax profit fell to £8.6m in the six months ended 30 June 2009 from £13m the year before. Revenue for the period fell to £870.4m from £1bn previously. Commenting on the results chief executive Ken Surgenor said, "We are pleased with this strong trading performance for the first half of the year...in a very difficult market.""The Board believes that whilst economic conditions remain uncertain, this year will continue to be challenging for the new car market.""However, the Group's diversified business model and market leading parts division, together with the actions that have been successfully completed in the Motor Division to reduce costs, leave the Group well positioned to trade through this difficult environment," it added.No interim dividend payment has been recommended but Lookers said it would return to payments again next year.