Auto retailer Lookers raises 2023 profit forecast

Auto retailer Lookers Plc (LOOK.L) on Wednesday said it expects pretax profit to come in "ahead of its previous expectations" this financial year, supported by robust trading in used vehicles, stable margins and improvement in supply.

The company, which sells new and used cars and vans and offers after-sales services, did not provide figures for its revised outlook.

Lookers' underlying pretax profit fell 8% to 82.7 million pounds ($103.3 million) for the year ended Dec. 31, against strong results in 2021 when it posted record profit due to a surge in margins.

Its revenue last year rose 6% to 4.3 billion pounds partly due to a 13% rise in the average selling price of new vehicles.

The group said that challenges in the supply of new cars are beginning to ease after a year of disruption due to the conflict in Ukraine.

UK new car registrations rose for the eighth consecutive month in March, recording a more than 17% rise from a year earlier, industry data showed.

Still, Lookers noted a "degree of uncertainty" about the coming months due to inflationary pressures and interest rate rises that could hit both its operating costs and consumer confidence.

London-listed Lookers' shares were up 2.6% at 87.2 pence as of 0735 GMT.