Lookers H1 trading continues to be 'strong'
Automotive retailer Lookers said on Wednesday that first-half trading continued to be "strong", with the group now expecting to report interim underlying pre-tax profits of approximately £45.0m
Lookers stated the momentum seen in 2021 had continued into the first half of 2022 against "a relatively strong" comparable period in 2021, in which revenues were higher at £50.3m.
In the five months ended 31 May, the UK passenger car market declined by 8.7%, significantly impacted by OEM supply restrictions and logistics disruption, with the group performing broadly in line with the total market but managing to outperform the market in the brands it represents. Used vehicle volumes declined by 8.1% over the same period.
Lookers said: "We are pleased with our strong H1 performance and have a good order bank going into the second half, albeit uncertainties remain on the availability of these vehicles and we are yet to fully understand how inflationary pressures may impact both consumer demand and our operating costs. We anticipate that the new and used vehicle supply restrictions will continue for the remainder of 2022 and beyond. Despite these factors, the board believes the group's scale, strength of OEM relationships, robust financial position, and omnichannel model leave us well placed to navigate these challenges.
"Given the unique trading conditions we are seeing across the market and in light of the performance to date, the board anticipates the year will be substantially H1 weighted and that underlying profit before tax will be ahead of its previous expectations."
As of 0900 BST, Lookers shares were up 5.74% at 78.25p.
Reporting by Iain Gilbert at Sharecast.com