Auto dealer Lookers sees profits leap following acquisition

Motor retail group Lookers plc has seen its profits rise from used car sales after a multi-million pound acquisition added dozens of new locations to its dealership portfolio.

In the three months to September 30 the firm, which is based in Stretford, Greater Manchester, achieved year-on-year profit growth of 7% in its used car business.

Similarly, turnover in its aftersales business rose by 8% against the same period in 2014, with gross profits up by 9%.

At the beginning of September, Lookers completed its acquisition of Benfield Motor Group for £87.5m to expand its network of dealerships by 30.

To finance the transaction, Lookers’ bank facilities were renewed and extended, giving the firm total facilities to £250m at lower interest rates than in previous borrowing arrangements.

In an official statement, the firm wrote: “The board is confident that the group should make further progress during the rest of this year.

“We therefore believe that the results for the year ending 31 December 2015 should be in line with current market expectations, which will represent a significant increase over the result for the previous financial year.”

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