Lookers expects to hit 2011 targets after 'satisfactory' Q3
Car dealership Lookers (LON:LOOK) reported a "satisfactory" quarterly performance and said that while trading conditions will remain difficult, it still expects to hit its full year targets.
In the nine months to end September, new car sales dropped 10 percent, however, Lookers noted that the decline was 5 percent ahead of the market, which shrunk by 15 percent.
Total sales across the group increased 2 percent despite an overall reduction in the market of 5 percent. Revenue growth was mostly due to a 4 percent increase in used car sales.
The group added that while new car margins were ahead of budget for the quarter, used car margins fell due to weaker consumer demand.
Meanwhile, the group's car parts division performed in line with budget and ahead of the prior year despite reduced turnover with two large customers and a decline in the UK car park for cars under three years old.
During this quarter, Lookers expects to complete negotiations with its lenders to extend its current bank facilities, which are set to expire in April 2012.
The group has managed to repay £21.8 million of bank loans so far this year after realising £12.7 million from the sale of surplus assets and net debt currently stands at a lower level than both budget and the position at 30 September 2010.
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