24 August 2022

Lookers has revealed a first-half profit before tax above expectations at £49.9 million, down fractionally on the 2021 H1 figure of £50.4m, however last year’s figure included £12.7m in government support. Turnover for the group was ahead of H1 2021 at £2.23bn.

Lookers had previously stated it expected to announce underlying profit before tax for H1 of £45m.

Commenting on the results, Mark Raban, chief executive officer, 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.

“We are focussed on operational ‘self-help’ efficiencies across the business. At the same time, we continue to pursue a number of exciting growth opportunities including with new brand partnerships. Whilst mindful of the pressures facing consumers, we are confident in our strategic direction and retain our expectations for the remainder of the year.”

Lookers attributed the strong performance to increased used and aftersales revenues with a “material improvement in vehicle gross profit”.

Lookers has also opted to repay its business rates relief of £1.5m in Q1 2022.

The group also said it was aiming to take on “a number of new brands and EV only entrants”.

Looking ahead, Raban added: “Trading during July and August has been in line with expectations. Margins remain at H1 levels and the group continues to maintain a strong order book for the remainder of 2022. With a focus on ‘self-help’ initiatives within our operational optimisation strategic priority, we have been able to add materially to the profitability of the business. Alongside this we launched the ‘You Choose’ brand campaign which sees the group investing to build significant brand awareness amongst consumers to strengthen the effectiveness of our strategic initiatives and drive long term growth.

“Notwithstanding the material cost headwinds being experienced and the wider macroeconomic uncertainties, the Group remains well positioned to deliver on its strategic priorities for the remainder of 2022 and beyond. We will continue to invest in our people, digital capabilities, building our OEM relationships and bring new EV entrants to the UK. All investments will continue to be made in line with the strict rules of our capital allocation policy.

The Company looks forward to providing an update on OEM/volume supply later in the year after the important month of September new car registrations.”

Lookers has also appointed a new non-executive director Sue Farr, who will chair the remuneration committee and audit and risk and nomination committees.

Tags: Lookers