Tuesday, June 02, 2009
Lookers financial reports
The company announced its unaudited results in April but since then it has signed new banking facilities with lenders for £210m which will mature in 2012.
As part of these new facilities Lookers is not paying a dividend as it moves to reduce its debt.
Trading in the first quarter ended March 31 was ahead of expectations, it said, and is also ahead of results the same time a year ago despite continued difficulties in the new car market.
During the year, as previously reported, the company rationalised its network by removing satellite operations and re-directing new car volumes back into main hubs to reduce costs and improve productivity
It also closed businesses, cut jobs and increased investment in its strong aftersales business.
Lookers' chief executive Ken Surgenor said: "We continue to believe that 2009 will be challenging for the new car market.
£12m cost savings
"However, our diversified business model and market-leading aftersales offering, coupled with the actions we have taken across our franchise operations and the anticipated realisation of £12m of cost savings in the current financial year mean that we are well placed to weather the uncertain economic environment, take advantage of any opportunities which may arise and emerge from this downturn as a stronger and more efficient business.
"As a result of our resilient performance against a difficult market backdrop I am pleased to announce today that we now have a sound financing structure in place for the medium term."
DATED: 02.06.09
FEED: MT
