Lookers said it would come “very close” to matching last year’s record first-half trading performance despite an 18 per cent fall in new car sales in the first six months of the year.
The motor retailer said that the car sales division had been hampered by weak consumer confidence, after being boosted last year by the Government’s scrappage scheme.
This was in contrast to the car parts business, which had another record run in the six months to June 30, Lookers said today in a trading update.
“Overall, the group continues to trade satisfactorily ... despite pressure on volumes in the new and used car markets,” Lookers said.
Its shares were trading up 1.7 per cent at 59p in early trading.
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Lookers said it had increased its share of the new car market, while profit margins remained in line with last year and ahead of budget.
Used car volumes were up 5 per cent compared to last year and “margins continue to be at satisfactory levels and consistent with last year”.
“Overall, the motor division has had a satisfactory first half to the year which is a good performance in a difficult market against a background of challenging economic conditions,” Lookers said.
Lookers will announce its half-year results on August 17.