Lookers profit plummets, no divi

1st Jun 2009 08:33

Continued difficulties in the car market wiped over 40% off full year profit at Lookers but it said cost cutting action in 2008 leaves the group well placed to outperform the new car market. "The year was the most challenging for the motor retail sector in recent history with the overall new car market declining by over 11% to 2.1m unit sales," the group said in today's statement. As part of its cost cutting and debt reduction programme Lookers is not recommending a final dividend. Full year adjusted pre-tax profit fell to £14m from £24.5m the previous year. Revenue for the year ended 31 Dec rose 5.7% to £1.78bn after including a full year of Dutton Forshaw. Lookers has also signed new banking facilities with lenders for £210m maturing in 2012. Trading in the first quarter ended March 31 was ahead of expectations, it said, and is also ahead of results the same time a year ago despite continued difficulties in the new car market. "The decisive action taken in 2008 to reduce costs across the franchise network has positioned the group well to outperform the new car market, and indeed our own like-for-like car sales for the first three months are 7.5% ahead of the market," Lookers said.