Lookers H1 profits rise after new car sales beat market

13th Aug 2014 11:15

Car dealer Lookers sold more new cars than rivals in the first half, helping it to forecast annual results ahead of market expectations.Lookers said growth in new car sales had been ahead of a strong new car market and it had a "healthy" order book for new car deliveries in the key month of September.The UK new car market increased 10% to 1.29m cars with the retail new care market expanding by 12%, but Lookers increased its core retail new car sales by 15% compared to 2013 on a like-for-like basis, 3% ahead of the UK market.The group benefited from more increases in used car volumes, increasing its market share, while after-sales turnover also rose.Revenue in the six months to 30 June increased 29% to £1.6bn, adjusted pre-tax profit rose 36% to £40.2m, pre-tax profit lifted 38% to £37.7m and earnings per share increased 42% to 7.59p.The group boosted its interim dividend by 10% to 0.97p per share.Chief executive Andy Bruce said: "Lookers is well placed to take advantage of further growth opportunities in the new and used car markets and increased demand for after-sales and parts."Chairman Phil White said: "The group should make further progress during the rest of this year with a result for the year which should exceed current market expectations."Shares in Lookers were unchanged at 134p by 10:29 in London.PW