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Lookers PLC on Wednesday said it was pleased with its performance in its first half and as a result expects its full-year profit to be ahead of expectations.
For the first half of 2022, the used car dealer now expects underlying pretax profit of £45 million. This is 10% below the previous year but Lookers noted it was a strong comparable period, particularly during the second quarter when lockdown restrictions were lifted.
In the five months to May 31, the company said the UK passenger car market declined 8.7% as a result of original equipment manufacturer supply restrictions and logistics disruption. Lookers performed broadly in line with the market but said it outperformed in the brands it represents.
New and used vehicle margins stayed strong though used vehicle volumes fell by 8.1%. Aftersales revenue remained resilient, however, showing good growth in the half.
As a result of its strong interim performance and its good order bank going into the second half, Lookers expects underlying pretax profit will be ahead of its previous, unspecified expectations.
In 2021, this figure stood at £90.1 million.
‘Following a record year in 2021 we have maintained strong trading momentum whilst continuing to make progress with our key strategic initiatives...There is no doubt that challenges lie ahead but with continued operational optimisation Lookers is extremely well positioned to continue to maximise its multiple growth opportunities,’ commented Chief Executive Mark Raban.
These challenges include uncertainty around the availability of vehicles, inflationary pressures, and the continued impact of new and used vehicle supply restrictions, the company explained.
Shares in Lookers were up 4.4% at 77.26 pence on Wednesday morning in London.
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