FIRST TIME contributions from the Charles Hurst motor business in Belfast helped to lift annual profits to over £8 million sterling at the Lookers motor group where Woodchester holds a minority 29.9 per cent stake.
Reporting its results yesterday, Lookers also said Woodchester was to pay around £4 million to buy the outstanding 49 per cent interest in Lookers' Planned Motoring, a British contract hire concern with around 3,500 vehicles on its books.
Charles Hurst was bought for £25 million by Lookers last February and financial results of the Belfast motor trader are included for the first time in the British company's results covering the year to September 30th. Hurst itself achieved £2.5 million operating profits on £105 million turnover in the seven and a half months after the Lookers' takeover.
After including the Hurst figures, Lookers' results show a £2.7 million increase in annual pre tax profits to £8.09 million on turnover up £110 million at £408 million. Earnings edged up from 15.1 to 15.5 pence per share and total dividends were up 0.1p at 8 pence per share.
"The highlight for the company during the year was the acquisition of Charles Hurst which has proved to be very satisfactory," said Lookers' chairman Mr Ken Martindale. "The profit contribution of Charles Hurst has been ahead of expectation and they are continuing to trade satisfactorily."
Overall, underlying growth in turnover and profits reached 10 per cent, much more than the growth of only 2 per cent reported for national British new car sales in the same period.
Hurst's superior performance was attributed both to buoyant demand in Northern Ireland and to the success of the company's "village" trading concept with different dealerships in one area thereby providing a wide choice for car buyers.
Also, there was demand from Republic of Ireland car buyers for Rolls Royce and Ferrari cars sold by Hurst under its franchise arrangements for the two brands covering the whole of Ireland. After buying Hurst last February, Lookers subsequently expanded the Northern Ireland operation through the £2.8 million purchase in September of the Peugeot dealership of Bairds Cars based in Belfast.
Ahead, further growth is being sought through new premises at Quarry Corner in east Belfast to act as dealers for Renault and Nissan cars. There is room on the site for a third franchise.
Although the Charles Hurst acquisition has turned out well so far, Lookers motor division in England suffered pressure on margins in the April September period due to intense competition in the new car business. Its network of dealerships is being rationalised in response to the drive by manufacturers to reduce the number of dealers.
