Lookers drives up profits
Added: (Tue Mar 21 2006)
Pressbox (Press Release) -
Car dealer Lookers geared up to fend off rival Pendragon's £259 million hostile bid yesterday as it reported record results. The Manchester-based group, which has more than 100 dealerships, said sales had leapt 13 percent to £1.23 billion in 2005 after its expansion into car supermarkets paid off. It said it would increase its dividend payment 26 per cent and pledged, to give further information on plans to return value to shareholders in its formal defence document.
Chief executive Ken Surgenor said it was up to shareholders to decide whether the results were enough to repel Pendragon. "We certainly think it sends out the right message," said finance director David Dyson. Lookers rejected Pendragon's £259 million all-share offer earlier this month, saying it undervalued its business. Pendragon, which has just completed its £506 million acquisition of rival Reg Vardy, is expected to post its offer document to Lookers shareholders in coming weeks.
Lookers' underlying profits soared 28 per cent to £18 million in 2005, driven by strong used car sales