Manchester-based car dealer Lookers plc said 2016 revenue increased 17% to £4.3 billion and adjusted profit before tax increased 7% to £77.1 million as it vowed to continue looking for acquisitions.

Lookers said its parts division was sold for £126 million in November 2016, that 10 underperforming dealerships were disposed of and the “strategically important” acquisitions of Knights BMW/MINI and Drayton Mercedes-Benz had been successfully integrated.

It said it would now focus on future acquisitions “of the right brands in the right locations in the motor division.”

Total dividend will increase 17% to 3.64p.

Lookers shares were trading down 3% at around 124p, giving it a stock market value of just under £500 million.

Lookers CEO Andy Bruce said: “Our profit is at record levels and has increased for the eighth consecutive year — evidence of both an expansive and a resilient business model.

“We know our strategy of having the right brands in the right locations and excellent execution is the right one — and during the year we’ve managed our portfolio of dealerships to reflect that. 

“Generating shareholder value through acquisitions is one of the things we do best.

“We will be making more acquisitions and have the balance sheet strength to do so.

“We’ve made a good start to the current financial year and have a healthy order book for the delivery of new cars in the important month of March.

“Our strategy of acting as a consolidator – and growing organically – leaves us ideally placed for growth and increased earnings in 2017 and beyond.”