11th Jan 2023 12:06
(Alliance News) - Lookers PLC on Wednesday said it expects underlying pretax profit for 2022 to be similar to 2021 when excluding Covid support, as it said it outperformed the new retail market.
The Trafford, Greater Manchester-based motor dealer said the new UK retail car market grew by 1.0% in the fourth quarter of 2022, after falling 1.5% in the third. Lookers added that underlying pretax profit in the quarter was higher than in the fourth quarter of 2021.
The company said it outperformed the wider market by about 3.1%. Group like-for-like unit sales rose 8.6% on-year in the final quarter.
It also won a deal to represent an unnamed Chinese electric vehicle manufacturer, which is eyeing entry to the UK market.
Looking ahead, Lookers expects an underlying pretax profit for 2022 of GBP80 million, compared to from GBP90.1 million in 2021, or from GBP80.3 million in 2021 when excluding Covid support of GBP9.8 million.
The company said: "The board is encouraged by the strength of trading in the fourth quarter and the magnitude of our new car retail and fleet order banks entering into 2023. However, we are also conscious of the potential impact on consumer spending by external factors such as high inflation and interest rates."
"We begin the new financial year with confidence in the resilience of our business model and 'omni-channel' customer offering, and as such the board's expectations for 2023 remain unchanged."
The company will release its 2022 results on April 5.
Lookers shares were 3.5% higher at 80.66 pence each in London on Wednesday afternoon.
By Tom Budszus, Alliance News reporter
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