Lookers H1 Profit Down, Says FY22 Trading Ahead Of Expectations; Stock Up

Lookers plc (LOOK.L), an integrated automotive retail and service group, Wednesday said it now expects to report underlying profit before tax for first half of around 45 million pounds, down from last year's 50.3 million pounds. For fiscal 2022, the company expects underlying profit before tax to be ahead of its previous expectations. In London, Lookers shares were gaining around 4 percent in the morning trading.

In its trading update, the company said the first-half trading has continued to be strong. The momentum seen in 2021 has continued into the period against a relatively strong comparable period in 2021.

In the five month period ended May 31, the UK passenger car market declined by 8.7 percent, significantly impacted by OEM supply restrictions and logistics disruption. The company performed broadly in line with the total market but outperformed the market in the brands which it represents.

In the five month period, the company's used vehicle volumes declined 8.1 percent. New and used vehicle margins remained strong driven primarily by vehicle supply shortages.

Going into the second half, the company has a good order bank albeit uncertainties remain on the availability of these vehicles.

It is anticipated that the new and used vehicle supply restrictions will continue for the remainder of 2022 and beyond.

In London, Lookers shares were trading at 77 pence, up 4.05 percent.

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