Lookers’ strong 2016 financial performance
- Lookers announced a strong financial performance in the first half of 2016
- Revenue increased by 33% to £2.34 billion (2015: £1.75 billion).
- Adjusted profit before tax increased by 16% to £50.1 million (2015: £43.1 million)
- Net debt significantly reduced to £74.9 million (31 December 2015: £161.7 million).
EXPANDING Lookers adds BMW and MINI dealerships with the £27m purchase of Knights Group BMW and MINI as it invests in its national dealership network.
The acquisition of Knights reinforces Lookers’ position as one of the largest motor retailers in the UK and introduces BMW and MINI to its stable of prestige motoring brands for the first time.
The £27m purchase of Knights includes six dealerships, bringing the total of Lookers dealerships nationwide to 166.
Knights BMW and MINI has dealerships in Stafford, Stoke and Crewe, each staffed by friendly and committed professionals who share the same customer-focussed values as Lookers’ 8,000 existing colleagues.
The acquisition is another significant demonstration of Lookers’ confidence in the UK automotive market and follows the announcement that it is to purchase the Drayton Group for £55.4m, bringing with it an additional seven Mercedes-Benz dealerships in the West Midlands when it completes in October.
The purchase comes as Lookers refocuses on expanding its core Motor Division following the recent agreement to sell its Parts Division for £120m.
Both BMW and MINI continue to increase in popularity in the UK with BMW increasing sales by 12% in 2015 compared to 2014, a new UK record for sales per year. MINI also produced a record year with an 18% increase in sales on the previous year. Such a positive performance helped the BMW Group achieve a market share of 8.7% of the total UK car market in 2015 (BMW 6.3% and MINI 2.4%).
Lookers chief executive Andy Bruce said: “The acquisition of Knights is one of our 2016 business priorities and fits with our two key business objectives; firstly, to deliver an outstanding customer experience and secondly, to make key acquisitions that enhance stakeholder value through the addition of great brands in prime retail locations.
“Knights is another perfect fit for Lookers and allows us to offer our customers an even wider choice of fantastic vehicles. We are excited to be adding BMW and MINI to our list of brands due to their history of producing some of the world’s most celebrated and iconic cars.
“While we are currently experiencing a period of significant expansion, Lookers still feels like a family business that takes pride in caring about its people. We believe every one of our dealerships is unique, with its own local profile of customers.
“We continue to see a lot of opportunity in the prestige car market as demand increases among the UK’s discerning motorists and have no doubt that the BMW and MINI dealerships we have acquired will continue to thrive as part of Lookers.”