Lookers provides positive trading update, delays publishing FY results By Investing.com

By Samuel Indyk

Investing.com – Auto dealership group Lookers PLC (LON:LOOK) has reported strong momentum in trading in recent months, where they have observed robust consumer demand and ongoing outperformance of the UK retail new car market.

The company added that used vehicle margins remain strong, benefitting from improving residual values and greater operational focus.

Given the strength of performance during the first half of the year, the company now expects full year performance to 31st December 2021 to be “significantly ahead of current expectations”.

“Performance in the first six months of the year has been exceptionally strong underpinned by our relentless focus on operational excellence, strong consumer demand, significant market outperformance and a much improved omni-channel customer experience,” Chief Executive Officer Mark Raban said in a statement to the London Stock Exchange.

However, the auto dealer cautioned that there remains uncertainty driven by the ongoing impact of COVID-19 and supply restrictions in both new and used vehicles, which have been tightening in recent weeks.

The update echoes that of competitors, Inchcape (LON:INCH) and Vertu Motors (LON:VTU), who both recently upgraded expectations but warned that the global semi-conductor shortage could begin to impact supply.

2020 results delay

Alongside the trading update, Lookers announced another delay to its 2020 results. Lookers had blamed the COVID-19 pandemic for initial delays to reporting the results and now says its auditors “require slightly more time” to conclude the audit process.

The company added it is not aware of any material issues and procedures are “almost complete”, however, the scheduled announcement for 29th June will be delayed.

The company has a deadline of 30th June to publish its results and views this as “achievable, but some timing risk still exists” in the completion of audit processes.

At 09:23BST, shares in Lookers were trading higher by 2.1% at 71.28 pence per share.