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Lookers maintains expectations in spite of emissions test disruption

The UK new car market reduced by 20.5% in September due to the impact of WLTP
cars
September saw sales plummet across the UK

Car dealer Lookers PLC (LON:LOOK) maintained its full-year expectations despite disruptions to new car supplies stemming from new WLTP emissions regulations.

"Based on the performance in this [third quarter] period, results for the year ending 31 December 2018 will be in line with current market expectations," said the statement.

The UK new car market reduced by 20.5% in September due to the impact of WLTP.

That decline followed a 23.1% rise during August as manufacturers cleared stock tested under the previous emissions regime.

The Society of Motor Manufacturers & Traders (SMMT) now expects total new car sales in 2018 will fall 6.3% to 2.38mln units.

Lookers has seen a 7% fall in new car sales and a 5% drop in gross profit in the nine months to September, though margin adjustments have helped mitigate the impact.

Used car revenue has risen by 10% with margins rising, while gross profit in the important aftersales division is 6% higher.

Shares rose 1.5% to 99.6p.

 

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