Lookers interim profits dip
By Michele Maatouk
Date: Wednesday 24 Aug 2022
(Sharecast News) - Car dealership Lookers reported a dip in interim profit on Wednesday as supply disruption made trading conditions challenging.
In the six months to the end of June, pre-tax profit nudged down to £49.9m from £50.4m in the same period a year earlier, with revenues up 3.6% at £2.23bn.
Underlying pre-tax profit fell to £47.2m from £50m. Lookers said this was against "an exceptionally strong" comparative in 2021, which benefited from £12.7m of government support, and despite rising employment and utility costs.
Underlying net operating expenses increased 15.1% from the first half of 2021 to £224m.
Like-for-like revenue rose 3.7%, with increased revenue from used cars and aftersales partially offset by lower new vehicle revenue.
Lookers said trading in July and August has been in line with expectations. Margins remain at the same levels as during the first half and the order book for the remainder of the year remains strong, it said.
Chief executive Mark Raban said: "Our first half financial performance was very strong, against an exceptional comparative period, despite ongoing inflationary pressure and vehicle supply disruption. We have also made excellent progress with our strategic priorities.
"Whilst mindful of the pressures facing consumers, we are confident in our strategic direction and retain our expectations for the remainder of the year."
At 0845 BST, the shares were up 4% at 78.13p.
Victoria Scholar, head of investment at Interactive Investor, said: "This is a strong set of forecast topping results from the used car dealer, which is outperforming despite pressures from semiconductor shortages, supply chain bottlenecks, the war in Ukraine and inflation and speaks to the company's effectiveness at leveraging efficiencies across the business.
"Although the share price has retreated from its peak in March, the stock has still recovered extremely well from the 2020 trough rallying by more than 650% off the lows when national lockdowns destroyed the business during the pandemic."
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