Lookers Holds Interim Payout Despite Profit Dive In Tough Markets

(Alliance News) - New and used car retailer Lookers PLC held its interim dividend Wednesday as ...

Alliance News 14 August, 2019 | 9:30AM
Email Form

(Alliance News) - New and used car retailer Lookers PLC held its interim dividend Wednesday as revenue grew in a challenging market, though profit fell by two-fifths.

For the six months ended June, pretax profit narrowed 40% to GBP24.9 million from GBP41.3 million the year prior. This was despite revenue rising 2.7% to GBP2.65 billion from GBP2.58 billion the year before.

Profit performance was hurt by weaker earnings from its new and used car sales as well as leasing business. Meanwhile, revenue was helped by healthy growth from used cars, aftersales and leasing sales which was partially offset by decline in new car sales.

"Our performance for the first half reflects an ongoing backdrop of challenging UK market conditions for the sector," Lookers Chief Executive Officer Andy Bruce said.

"Whilst we are reporting lower profits year-on-year, we have made good progress on a number of strategic initiatives and have a clear investment plan to restructure and strengthen our regulated activities," Bruce added. "Our balance sheet remains strong including our valuable property portfolio."

Lookers proposed a 1.48 pence per share interim dividend, unchanged on the year prior.

"Working closely with our brand partners I am confident in the long-term prospects for the business," Bruce continued. "The board's current outlook for the full year at the underlying profit before tax level remains unchanged."

Shares in Lookers were 0.7% lower at 43.70 in London on Wednesday.

By Ahren Lester; ahrenlester@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

Email Form

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Lookers PLC 62.00 GBX 0.00 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites