Lookers reports record profits 09 | 03 | 2017
LOOKERS — WHICH OPERATES Taggarts and Lomond Audi in Scotland — has reported record profits for the eighth successive year, and is targeting more acquisitions. The company, overseen by Scot Andy Bruce (pictured), and which saw revenues increase by 17% to £4.3 billion in 2016, saw pre-tax profits soar by 46% to £91.8m.
The profits benefited from a £28m one-off gain from Lookers’ sale of its wholesale parts division to Alliance Automotive. This was completed in order to free cash for expansion of the franchised dealership portfolio in its motor division.
Lookers acquired Knights BMW and Mini and Drayton Mercedes-Benz and Smart businesses, and its trading results show its motor division’s turnover rose by £658 million, of which acquisitions contributed only £131m.
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Adjusted pre-tax profit rose 7% to £77.1m. Adjusted operating profit was 10% up at £94.7m. Lookers said it undertook a review of its franchised operations in 2016 and sold or closed 10 underperforming businesses as a result.
The company is also set to launch a new website this year in order to “enhance operational efficiencies further”, as it continues to invest in its “multi-channel customer experience”.
"I am pleased to announce an excellent set of year end results,” chief executive Andy Bruce said. “Our profit is at record levels and has increased for the eighth consecutive year, evidence of both an expansive and a resilient business model.
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“We know our strategy of having the right brands in the right locations and excellent execution is the right one; and during the year we've managed our portfolio of dealerships to reflect that.
“Generating shareholder value through acquisitions is one of the things we do best. We will be making more acquisitions and have the balance sheet strength to do so.
“We've made a good start to the current financial year and have a healthy order book for the delivery of new cars in the important month of March. Our strategy of acting as a consolidator — and growing organically — leaves us ideally placed for growth and increased earnings in 2017 and beyond."
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Jim McGill