Car sales recovering for Lookers

All its sites in England, including those in the Black Country, Shropshire and Staffordshire, were open from the start of June.

In June dealerships in England outperformed the UK new retail car market and recorded growth in like-for like used unit sales.

For the first half of its financial year the group expects to report revenue of approximately £1.6 billion, £1bn down on a year before. It expects to report a loss before tax for the period.

Sales trends strengthened in July as the group's dealerships in Scotland reopened. During July, on a like-for-like basis, the Group invoiced and delivered more than 14,000 new and used cars exceeding last year by 17 per cent. Like-for-like service revenues also showed growth on last year.

Underlying profit before tax was materially ahead of last year during July.

Momentum has continued into August and new vehicle order take for the important September plate change is building well.

Lookers said the release of pent up demand from over two months of closure, together with an ongoing consumer trend to avoid public transport in favour of the private car, has helped to drive activity.

The group's large internal and external retail premises mean social distancing measures are less disruptive than many other forms of retailing which has helped encourage customers back to the dealerships.

The business has also been helped by recently introduced initiatives including a contactless handover process and a range of enhancements to the group's online offering, which are helping to drive increased efficiency and productivity.

The group previously announced it had identified 12 dealerships for either closure, consolidation or refranchising. This activity is now substantially complete and will be finalised during the remainder of 2020. Disposals will continue during the remainder of 2020 and in 2021.

During June and July the board consulted across all areas of the group and confirmed more than 1,400 jobs as redundant.

By the end of September total headcount is anticipated to be approximately 6,700.

Chief executive Mark Raban said: "This has been a very challenging period for Lookers, but it is encouraging that we are beginning to see some healthy signs of recovery in vehicle sales since the easing of lockdowns.

"I would like to thank all my colleagues for their amazing commitment in difficult circumstances and the efforts they have made to adapt, innovate and improve our physical and online proposition to customers, ensuring a safe and smooth retail environment. I am also extremely grateful to all our other stakeholders, including our brand partners, for their support through this period.

"We remain cautious about the future given ongoing uncertainties in the wider environment, but confident in the opportunities for the Lookers business moving forward."