We are excited to be adding BMW and MINI to our list of brands as they are marques that we have admired for some time due to their history of producing some of the world’s most celebrated and iconic cars.
Manchester, UK (PRWEB UK) 22 August 2016
The acquisition of Knights reinforces Lookers’ position as one of the largest motor retailers in the UK and introduces BMW and MINI to its stable of prestige motoring brands for the first time.
The £27m purchase of Knights includes 6 dealerships, bringing the total of Lookers dealerships nationwide to 166.
Knights BMW and MINI has dealerships based in Stafford, Stoke and Crewe, each staffed by friendly and committed professionals who share the same customer focussed values as Lookers’ 8,000 existing colleagues.
The acquisition is another significant demonstration of Lookers’ confidence in the UK automotive market and follows the announcement that it is to purchase the Drayton Group for £55.4m, bringing with it an additional 7 Mercedes-Benz dealerships in the West Midlands when it completes in October.
The purchase comes as Lookers refocuses on expanding its core Motor Division following the recent agreement to sell its Parts Division for £120m.
Both BMW and MINI continue to increase in popularity in the UK with BMW increasing sales by 12% in 2015 compared to 2014, a UK record sales year. MINI also produced a record year with an 18% increase in sales on the previous year. Such a positive performance helped the BMW Group achieve a market share of 8.7% of the total UK car market in 2015 (BMW 6.3% and MINI 2.4%).
Lookers Chief Executive Andy Bruce said: “The acquisition of Knights is one of our 2016 business priorities and fits with our two key business objectives; firstly, to deliver an outstanding customer experience and secondly, make key acquisitions that enhance stakeholder value through the addition of great brands in prime retail locations.
“Knights is another perfect fit for Lookers and allows us to offer our customers an even wider choice of fantastic vehicles. We are excited to be adding BMW and MINI to our list of brands as they are marques that we have admired for some time due to their history of producing some of the world’s most celebrated and iconic cars.
“While we are currently experiencing a period of significant expansion, Lookers still feels like a family business that takes pride in caring about its people. We believe every one of our dealerships is unique, with its own local profile of customers.
“We continue to see a lot of opportunity in the prestige car market as demand increases among the UK’s discerning motorists and have no doubt that the BMW and MINI dealerships we have acquired will continue to thrive as part of Lookers.”
Lookers announced a strong financial performance in the first half of 2016, with Revenue increasing by 33% to £2.34 billion (2015: £1.75 billion). Adjusted Profit Before Tax increased by 16% to £50.1 million (2015: £43.1 million) and Net debt significantly reduced to £74.9 million (31 December 2015: £161.7 million).
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NOTES TO EDITOR:
- Andy Bruce, Lookers CEO, won ‘CEO of the Year’ at the prestigious Motor Trader of the Year 2016
- Lookers won ‘Dealer Group of the Year Award’ at Motor Trader of the Year 2016, this followed the 2015 win by Benfield Motor Group that won in 2015
- Lookers is the new name of Benfield Motor Group
- Lookers group annual turnover in 2015 was £3.6bn
- Lookers sold almost 180,000 new and used cars and vans
- The motor division consists of 153 franchised dealerships
- 31 marques are represented and support by Lookers
- Lookers employ almost 8,500 people across the group
- Lookers Executive Directors include Andy Bruce (Chief Executive), Robin Gregson (Finance Director), Nigel McMinn (Managing Director – Motor Division) and Neil Davis (Managing Director – Parts Division)
- The combined turnover of the Motor Trader Top 200 was £56.4bn, an increase of £4bn over the previous year.
INTERIM RESULTS H1 2016, ENDED 30 JUNE 2016:
- Full results are available at http://www.lookersplc.com/investors
- Revenue increased 33% to £2.34 billion (2015: £1.75 billion\)
- Profit before tax increased by 17% to £46.7 million (2015: £39.9 million)
- Earnings per share up 17% at 9.44p (2015: 8.08p)
- Increase in interim dividend of 20% to 1.28p per share (2015: 1.07p)
- Net debt significantly reduced to £74.9 million (31 December 2015: £161.7 million)
OPERATION AND POST-PERIOD END
- Proposed disposal of Parts Division for £120m announced 10th August – expected to complete by the end of October 2016
- Conditional agreement to acquire Drayton Group for £55.4m announced on 15th August –expected to be earnings enhancing for the year ending 31 December 2017
- Healthy order book for the delivery of new cars in September 2016
- The statutory accounts for Knights Group for the year ended 31 December 2015 reported turnover of £213.3m and profit before tax of £1.9m. Knights Group had gross assets of £20.1m and net assets of £6.0m.