Lookers expects record profit, restored dividends

Altrincham-based car dealership Lookers plc said on Friday it expects “record underlying profit before tax ahead of company compiled market consensus of £82m.”

Lookers also said it intends to restore dividends alongside its full year 2021 results on April 13.

Announcing a trading update for the financial year to December 31, 2021, Lookers said its fourth quarter remained strong but “the ongoing global shortage of semi-conductors continued to place pressure on the supply of new and used vehicles.”

In its outlook, Lookers said: “The group has had an exceptional year in 2021 and is starting 2022 with an excellent new car order bank.

“However, given ongoing global supply chain disruptions, uncertainty as to the availability of new vehicles and the sustainability of used car margins at current levels, the board believes it is right to remain cautious.

“The board is also conscious of general inflationary pressures and increased utilities costs, and is managing these risks through a continued focus on working capital management and tight cost control.

“The board is confident that the group remains well positioned to capitalise on the opportunities ahead and achieve its financial expectations.”

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