Lookers has reported a pointy rebound in pre-tax profit performance one full 12 months on from its acquisition by Canadian owners Alpha Auto Group.
The highest five AM100 group moved to personal ownership in October 2023 following a £504 million deal by Global Auto Holdings Limited (GAHL), the UK company arrange for the deal by Alpha Auto.
Results for the 12 months ended December 31, 2024 posted to Firms House, show underlying profit before tax (PBT) rose 55% to £58.4m, with reported PBT at £43.7m against a £1.8m loss in 2023.
Margin preservation in used vehicles and disciplined expense control were cited as key contributors for the outcomes, alongside regular aftersales and growth in leasing and other activities.
Turnover softened by 4.4% to £4.3 billion, with Lookers stating that pricing normalised following the top of supply constraints and consumers faced cost pressures.
Gross profit performance edged up 0.4% to £561.8m.
The outcomes also reflect £21m of underlying cost reductions and a small uptick in gross profit, partly offset by about £2m in higher finance costs.
Non underlying items totalled £14.7m, including transformation, site exit and impairment charges, plus gains on property disposals.
Underlying operating profit increased to £100.3m from £77.3m, while reported operating profit reached £85.6m, up from £39.4m.
GAHL appointed former VW Group UK boss Alex Smith, alongside managing director James Brearley and a brand new executive team to proceed the transformation of the 134-strong group because it was acquired in 2023.
Lookers made around 10% of its staff redundant following the takeover of Alpha and delisting from the stock market.
The group went through a detailed review “to maintain the business efficient and ensure we’ve got a manageable cost base”.
Recent, used and aftersales performance
Registrations rose 3% to 96,819 units, but revenue slipped 0.6% to £2bn as mix shifted toward lower average selling price fleet and Motability channels.
Recent automobile gross margin eased to 7.4% from 7.7%.
Used automobile volumes fell 7% to 74,996 units and revenue declined 11.1% to £1.6bn, yet gross margin improved to five.6% from 5.2% through tighter stock control and pricing.
Finance and insurance income reduced 9.2% to £55.4m consistent with affordability constraints and lower penetration.
Revenue in service, parts and body repair nudged up 0.5% to £382.6m and remained a stable contributor to profit.
Leasing and other revenue increased by 18.9% to £165.6m, reflecting momentum in fleet, leasing and rental propositions.
Lookers has agreed to roll out Pinewood’s Pinnacle dealer management system across the network in 2025, targeting higher customer experience, productivity and analytics.
The group’s management team said the near term focus is to construct on cost discipline, optimise the brand footprint and grow top quality fleet, leasing and aftersales income while protecting used margins.
Lookers’ results statement said it would proceed to trace the pace and blend impact of the Zero Emission Vehicle (ZEV) mandate on each recent and used markets, in addition to the potential aftersales dilution because the battery electric vehicle (BEV) parc matures.
Other areas risk include UK consumer demand and regulatory developments around historical motor finance complaints following the August 2025 Supreme Court decision and the Financial Conduct Authority’s (FCA) planned consultation.
This Article First Appeared At www.am-online.com
