05 April 2023

Lookers has raised its 2023 forecast in its latest full-year financial results. During 2022 the group achieved an underlying pre-tax profit of £82.7 million, fractionally ahead of expectations but down from a record £90.1m in 2021. Turnover for the retailer was up from £4.05 billion to £4.30bn last year.

Providing an update on Q1 trading, Mark Raban, Lookers CEO, said: “We remain mindful of pressures faced by the consumer and on discretionary spending. However, we are confident in our proposition, our balance sheet and strategic focus, with significant opportunities ahead. With good momentum across the business, we have continued to trade strongly in Q1 2023, and the board’s outlook for underlying PBT for the current financial year is now ahead of its previous expectations.”

Mark Raban, CEO, Lookers

Analysts had forecast a PBT in the region of £62m for 2023, however, Zeus Capital has now increased its expectation to £70.2m on the back of the latest figures.

Lookers also revealed the strong start to the year had been driven by used car and aftersales growth plus “stable margins and ongoing working capital and cost disciplines”. The business reported an order bank of 18,000 new retail units and 24,000 fleet units at the end of Q1.

2022 Highlights

• Group revenue of £4,300.9m (2021: £4,050.7m) reflecting strong trading across all divisions despite supply restrictions and logistics disruption
• Basic earnings per share of 18.87p (2021: 15.65p), up 20.6% versus 2021
• Underlying profit before tax of £82.7m (2021: £90.1m, £80.3m excluding £9.8m of Covid support), primarily driven by new and used vehicle market outperformance and cost control
• Robust balance sheet with net cash of £66.5m (2021: £3.0m) and a property portfolio with a net book value of £290.5m, equivalent to a combined 92p per share
• Final dividend of 2.0 pence per share proposed, full year dividend up 20.0% versus 2021

Tags: Lookers, Mark Raban