Lookers plc’s trading update this week spells out that the dealership group expects to hit a record £82m underlying pre-tax profit for 2021. It has also turned a £40m net debt into an £8m cash holding.
While the full results won’t be published until April, it has been announced that Lookers was optimistic about a ‘record underlying profit before tax ahead of [the] company-compiled market consensus of £82m’.
It’s an exceptional performance achieved during exceptional times, as Mark Raban, Chief Executive Officer said:
“2021 was an exceptional year for Lookers and we now expect to beat our previous estimates with record profit for the year. This is a great achievement by the whole team in a year which brought many external challenges, including Covid and vehicle shortages, demonstrating the strength of our proposition. With net cash at the year end, we have a strong balance sheet and good capacity to invest in future growth opportunities.
“There are many structural changes which are creating opportunities in our market including evolving consumer behaviour, electrification, and changing relationships with our brand partners. The Board and Executive have been refreshed and we are well progressed with a major review both to improve our operational performance and to future proof our revenue streams through a number of strategic growth opportunities. We have outlined our main areas of focus in our update today and are excited about our ambition and aspiration to become The UK’s Leading Integrated Automotive Retail and Services Group.”