Lookers H1 Pre-tax Earnings Decline, But Revenue Improves

Lookers Plc (LOOK.L), a used car dealership chain in the UK and Ireland, on Tuesday posted a decline in pre-tax earnings for the first-half, amidst a rise in costs and expenses, and a non-underlying charge. However, the Group registered an increase in revenue.

For the six-month period to June 30, the company posted a pre-tax profit of 40.4 million pounds, compared with restated 49.9 million pounds, posted for the same period of last year. Underlying pre-tax income moved down to 46.1 million pounds from previous year’s restated 47.2 million pounds.

After tax, profit stood at 30.4 million pounds or 7.84 pence per share as against last year’s restated 40.4 million pounds or 10.19 pence per share. Underlying post-tax income also fell to 34.6 million pounds from previous year’s restated 37.9 million pounds.

Underlying basic income per share was at 9.02 pence per share as against previous year’s restated 9.67 pence per share.

Operating profit was at 58.7 million pounds, compared with restated 61.5 million pounds a year ago. Underlying operating earnings, however, improved to 64.4 million pounds from restated 58.8 million pounds of previous year.

EBITDA was at 87.7 million pounds, same as last year’s restated 87.7 million pounds.

Underlying EBITDA improved to 93.4 million pounds from restated 85 million pounds in 2022.

Cost of sales stood at 2.124 billion pounds, versus restated 1.957 billion pounds of last year.

Net operating expenses rose to 235.5 million pounds from restated 221.3 million pounds of 2022.

The Group recorded a net non-underlying charge of 5.7 million pounds, compared with a net credit of 2.7 million pounds in 2022. The largest element of this is professional services costs incurred in relation to the potential transaction of 3.6 million pounds. It also incurred 1.5 million pounds of non-underlying cost related to the implementation of the Sales Transformation project.

Revenue was 2.418 billion pounds, compared with restated 2.239 billion pounds a year ago.

Looking ahead, Lookers, said: “…We are encouraged by our good H1 performance, particularly the resilience of the Group in the face of rapidly increasing interest rates and persistent cost pressures. We maintain a strong new vehicle order bank moving into the second half of 2023 but remain cognisant of continuing macroeconomic pressures.”

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