Lookers elevated its full-year revenue expectations to £75 million and kicked-off a £15m share buyback programnme after reporting sturdy efficiency in a Q3 buying and selling replace.
The AM100 PLC said that its new automobile gross sales volumes had outperformed the market by 5.6% through the three-month interval to September 30, with retail unit gross sales up 11.5% towards the broader UK market in September and underlying revenue earlier than tax for the month in step with final 12 months.
Like-for-like used unit gross sales had been down 7.1% – an enchancment on the-8.3% decline reported in H1 – however gross margins remained “broadly in step with these reported within the first half”, the group stated.
Aftersales revenues remained “strong” and had been forward of final 12 months on a like-for-like foundation.
Commenting on the group’s Q3 outcome and a projected full-year efficiency which would depart the group 16.8% down on a record 2021, regardless of “vital price inflationary pressures”, Lookers chief govt Mark Raban stated: “We’ve got constructed on the sturdy first half buying and selling momentum, significantly within the necessary month of September with the arrival of a brand new registration plate.
“We stay conscious of ongoing provide chain disruption and vital inflationary pressures affecting customers and companies alike.
“Nevertheless, our intense deal with driving self-help operational efficiencies throughout the enterprise and making certain ongoing sturdy automobile margin retention implies that we’re growing our revenue expectations for the complete 12 months.”
Raban, the AM Awards 2022’s Business Leader of the Year, added: “I wish to thank all of our stakeholders, significantly my unbelievable colleagues throughout the enterprise, for his or her tireless efforts in serving Lookers clients to supply these sturdy outcomes.”
The Lookers board celebrated the signing of recent franchise agreements with each Great Wall Motors’ Ora electric vehicle (EV) brand and Lotus Vehicles throughout Q3.
It would signify Ora in Wolverhampton and Braintree and has secured a Lotus franchise for Northern Eire, with all operations set to start buying and selling from present group services throughout This autumn.
The group stated that its monetary technique would purpose to take care of stability of investing within the enterprise and shareholder distributions, whereas sustaining a leverage ratio of 0.5x Web Debt/EBITDA.
Lookers had a web money stability of circa £86m on the finish of Q3, in comparison with web money of circa £33m a 12 months earlier, with a web guide worth of freehold and leasehold properties of circa £297m.
The mixed worth of Lookers’ money and property portfolio is now equal to 98p per share (31 December 2021: 78p).
Right now’s launch of a share buyback programme goals to cut back the share capital of the corporate and improve earnings per share, it stated.
Delivering its outlook for the rest of 2022 buying and selling, the Lookers board stated it was “inspired by the power of buying and selling in Q3 and the early begin to This autumn”, including that it could “proceed to take care of a powerful new automobile order financial institution, which is above historic normalised ranges”.
Highlighting the continued financial uncertainty and inflationary pressures impacting customers, it added: “Though we’re happy with the current optimistic buying and selling efficiency, the supply of recent autos continues to be an element limiting our progress.
“We’re additionally cautious on how shopper spending is likely to be affected through the the rest of this monetary 12 months, with inflation, greater rates of interest and wider financial uncertainty.
“However these components, given the power of efficiency within the interval, the board now expects underlying revenue earlier than tax for 2022 to be forward of its earlier expectations and to report at least £75m.”