Lookers Rises After Buoyant 1H Despite Loss of Govt. Support

By Geoffrey Smith

Investing.com -- Lookers (LON:LOOK) shares rose 2.7% in early trading in London on Wednesday after the online car dealership reported a relatively strong first half for 2022 despite the ongoing weakness of the U.K. auto market.

Revenue edged higher to 2.23 million pounds from a restated 2.15 million pounds a year earlier while underlying profit before tax slipped only slightly to 47.2 million pounds from 50.0 million pounds. The 2021 figures included 12.7 million pounds of government support related to the pandemic.

The company also declared an interim dividend of 1p a share, which compares to 2.50 for the full year in 2021.

The figures are all the more striking for coming at a time when U.K. car sales suffered their second worst first half in 30 years, falling 12% from a year earlier. The trend has so far failed to improve much in the second half, as consumers and businesses are increasingly squeezed by surging energy costs.

Lookers contributed its own small part to that inflation with what it called a "material expansion" of its gross profit margin on new cars in the half. That was due in part to a continued shortage of new vehicles in the wake of the pandemic.

"Whilst mindful of the pressures facing consumers, we are confident in our strategic direction and retain our expectations for the remainder of the year," chief executive Mark Raban said in a statement.