Car dealership group revs into top gear with record first half showing
Altrincham car dealership group Lookers announced a record first half performance today, covering the six months to June 30.
Revenues of £2.153bn compared with £1.570bn the previous year, while last year’s £50.4m pre-tax loss was transformed into a pre-tax profit of £50.7m this year.
The group said first half trading was exceptionally strong, despite the closure of the showrooms throughout the first quarter due to lockdowns.
Trading was underpinned by robust consumer demand and an improved omni-channel customer proposition, resulting in ongoing outperformance of the UK new retail car market (+17.4ppts) and a market share of 6.7%.
Given the strong first half performance and the group’s ongoing corporate responsibility agenda, the board announced it has voluntarily undertaken to repay all Government CJRS grants received for the first half, a total of £4.1m, before the end of the second half of the financial year.
There was strong cash generation, with net cash of £33m at June 30, 2021, compared with net debt of £40.7m at December 31, 2020, driven by the strong trading performance, continued working capital control and cost discipline.
The board also announced that it intends to resume dividend payments as soon as possible and will next review the position when releasing its 2021 full year results.
Trading during July and August has remained strong, exceeding expectations, primarily driven by unprecedented used vehicle margins. Order take also remained robust and the group has a strong order book for September and the remainder of 2021.
The group said it remains well positioned for the remainder of 2021 and beyond. Therefore, current expectations for underlying profit before tax for 2021 remain unchanged after having committed to fully repay all CJRS grants.
Lookers today also announced the appointment of Ian Bull as non-executive chairman, effective from October 1, 2021, at which point Phil White will stand down as non-executive chairman and leave the board.
And it announced the appointment of Oliver Laird as chief financial Officer with effect from November 15, 2021.
Chief executive, Mark Raban, said: “We have delivered a record performance in H1, despite significant COVID-19 related disruption.
“Demand has continued to be strong as we see a sustained preference for car-based travel amongst consumers. We have been able to capture this demand and outperform the market through continued improvements to our omni-channel customer experience which allows customers to purchase cars with us however they wish.”
He added: “The rapid growth of electric vehicles continues apace, and we are well positioned to maximise this exciting growth opportunity alongside our other strategic growth pillars.
“Whilst we are mindful of various short term pressures, particularly around supply, with a refreshed board, a restructured business and an enhanced digital proposition, there is much to look forward to.”
