UK car dealer boosts profits
British car dealer Lookers today said half yearly profits had more than doubled after it won back more than £17m (€25m) in overpaid VAT.
The Manchester-based firm, which was paid the cash to cover tax wrongly charged on demonstration cars up to 30 years ago, said the rebate helped it post the record results.
Lookers has also benefited from the recent acquisition of a motor parts business as it looks to drive profits in the key aftersales sector.
The company, which has more than 60 dealerships selling vehicles made by manufacturers including Renault, Vauxhall and Volkswagen, said a 16% hike in used car sales and a 13% increase in new car sales also contributed to a “strong” first half.
Pre-tax profits rose to £26.1m (€38.8m) in the six months to June 30, from £10.3m (€15.3).
