LOOKERS

John Stevenson at broker Peel Hunt, which is an adviser to Lookers, says he is upgrading his profit forecast for the group. The new target is 7% higher at £45.6 million.

Andy Bruce, the Lookers chief operating officer, who will take over as chief executive this year

With plenty of good retail demand to supply, Lookers has taken it easy on the high volume/low margin fleet deals, leaving them to dealers who feel there is scope for taking a risk on better volumes.

Lookers is expanding its web presence and orders taken online augment its coverage of potential customers.

The mix has shifted towards premium cars – Audi and Land Rover in particular – and margins have made further gains as a result. Vauxhall is also proving to be a brand with enhanced potential as a result of changing the operational management.

Used car margins are also better and have outperformed the wider market.

Aftersales and parts have stepped up and the group is pushing electronic car health checks to customers to keep them part of the family. Parts sales are up 5% and profit on them is doing better than that.

Panmure  Gordon, a market maker in Lookers shares, has upgraded profit forecasts by 9% and pointed out that the shares are trading at a lower valuation than many of the peer group.