Strong growth in imports of cars from the Republic into Northern Ireland has yet to dent the profitability of Charles Hurst, owned by UK motor firm Lookers where Woodchester GE holds a 29.9 per cent stake.

Lookers chairman, Mr Craig McKinney, commenting on the group's interim results, says Charles Hurst ranking as the largest motor trader in Northern Ireland "once again recorded an excellent performance".

Although car sales fell by seven per cent to 13,500 in the half-year to June 30th, profits were maintained at a similar level to last year with all of Charles Hurst's franchised outlets contributing to the result.

"This result is particularly significant when considering the ongoing disruption to the market place caused by imported vehicles from southern Ireland," says Mr McKinney.

The fall in the Irish pound against sterling has prompted a surge in car imports over the past two years or so. Overall, sales of imported cars from the Republic now comprise around 20 per cent of the Northern Ireland car market, nearly double the market share held two years ago before the introduction of the euro.

Interim figures from Lookers detail an 11 per cent increase in pre-tax profit to £5.0 million sterling in the half-year to June 30th. Turnover rose six per cent to £292 million with UK sales increasing by as much as 25 per cent to nearly 300,000 cars despite uncertainty over pricing policies of major car manufacturers.

Ahead, Mr McKinney says the British government's new car pricing order will lead to lower car prices, thereby stimulating sales. The group will now be able to purchase cars on similar terms to large fleet buyers.

"The entire group will benefit from stability being restored to the market place," comments Mr McKinney, saying directors look forward to the future with confidence.

Lookers shares rose 5p to 84p.