Lookers raises FY pre-tax profit guidance following 'strong close' to 2022

(Sharecast News) - Car dealership chain Lookers hiked full-year underlying pre-tax profit guidance on Wednesday following a "strong close to the year". Lookers stated that trading in the fourth quarter was ahead of internal expectations, with underlying pre-tax profits greater than at the same time a year earlier.

As a result, full-year underlying pre-tax profits were now pegged to be greater than £80.m but still below the previous year's figure of £90.1m, which included £9.8m of Covid support.

Lookers highlighted that it had outperformed the UK new retail car market by approximately 3.1% in Q4, while like-for-like used unit sales were 8.6% ahead of Q4 2021 and used vehicle margins remained broadly in line with those reported at the half. Aftersales revenues grew approximately 7.5% ahead of the same quarter in 2021.

Chief executive Mark Raban said: "We've enjoyed a strong close to the year, outperforming the new retail market, leading to an increase in our full-year profit expectations. This has been achieved against a context of significant supply chain disruption and unprecedented inflationary cost pressure.

"Despite a number of ongoing trading headwinds, we have started 2023 confidently. Our strong OEM relationships, clear strategic priorities, financial capacity, and above all the commitment of my Lookers colleagues leaves us very well positioned for the future."

As of 0930 GMT, Lookers shares were up 5.31% at 82.03p.

Reporting by Iain Gilbert at Sharecast.com