Weak confidence puts the brakes on Lookers' growth

7th Jul 2011 12:44

New and used car dealer Lookers faced difficult trading conditions in its motor division in the second quarter as weak consumer confidence in the UK continued to weigh on sales. Lookers said the new car retail market fell by 18.1% in the first half of the year in the UK, while group sales of new retail cars reduced by 12.7%. However, the company saw used car volumes increase by 5% in the period, compared to the year ago figures and said it expects the group results for the first half to June 30 to be "very close" to the performance in 2010.Lookers said, "We continue to focus on working capital management and cash flow is ahead of budget also benefiting from the sale of surplus assets which have realised £12m in the first half of the year. Net debt continues to be well managed and is at a lower level than both budget and the start of this year."Shares of the company slumped 6.9% to 54p in afternoon trading in London. AR