Lookers hails ‘strong’ first half, against exceptional comparative results

Altrincham-based car dealership group Lookers has published “strong” first half results for the six months to June 30, 2022.

Revenues of £2.23bn were up on the previous year’s turnover of £2.153m. Pre-tax profits of £49.9m were slightly down on the previous year’s £50.4m, but the company said this was against “an exceptional comparative period”.

Shareholders will receive a 1p dividend per share, compared with no payout at the same period a year ago, reflecting the trading performance and strong balance sheet.

The group said first half trading was strong, despite supply constraints on new vehicles.

It said it has made good progress against its strategic priorities.

Lookers said its increased revenues were driven by increases in used vehicles and aftersales, while outperforming the UK new car market by 1.7%.

It reported excellent cash generation with net funds of £78.5m as at June 30, 2022, compared with £3m at December 31, 2021, due to strong trading and robust working capital management.

Chief executive, Mark Raban, 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 remain focused on our customers and improving our proposition to ensure the process of buying or leasing a car is as easy and simple as possible, particularly in the current challenging economic environment. Notably, our recent ‘You Choose’ brand campaign highlighted the progress we have made in our omnichannel capabilities.”

He added: “We are focused 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.”

The group also announced that Sue Farr will join the board of Lookers as a non-executive director on September 1, 2022. She will chair the remuneration committee and will join the audit and risk and nomination committees.

She has more than 10 years’ experience as a non-executive director, with remuneration experience. Her current non-executive directorships are at Accsys Technologies plc – former remuneration chair – as senior independent director at British American Tobacco plc and as remuneration chair at Helical plc.

During the past five years she has also held non-executive directorships at Dairy Crest Plc and Millennium & Copthorne Hotels plc.

Sue brings considerable experience in marketing, branding and consumer issues to Lookers, from the BBC and Chime Group, along with automotive experience at General Motors Vauxhall.

The board expresssed its thanks to Victoria Mitchell for her diligence and commitment in acting as interim chair of the remuneration committee pending a permanent appointment and welcomes Sue joining as the group approaches the triennial review of Lookers’ remuneration policy.

Ian Bull, chair, welcomed Sue, saying: “Her extensive and relevant experience will be a valuable addition to our board in the next phase of our journey to become the UK’s leading integrated automotive retail and services group.

Sue Farr said: “I am excited to be joining the board of Lookers at a transformative time for the business and the industry as a whole.”