Lookers begins £15m buyback programme as it raises year profit
Lookers has begun a £15m share buyback programme as it raises profit forecasts for the full-year.
The car dealership chain announced today that, encouraged by strong trading in the third quarter, it now expects profit before tax for 2022 to be ahead of previous expectations to no less than £75m.
“We have built on the strong first half trading momentum, particularly in the important month of September with the arrival of a new registration plate,” said chief executive Mark Raban.
“Our intense focus on driving self-help operational efficiencies across the business and ensuring ongoing strong vehicle margin retention means that we are increasing our profit expectations for the full year.”
In the three months ended 30 September, Lookers outperformed the declining UK new car market by 5.6 per cent as a result of its omni-channel customer experience strategy.
In September – the second most important month for automotive sales due to the arrival of new registration plates – the dealer’s new retail unit sales were up by 11.5 per cent against the UK average of 4.6 per cent.
However, the group has remained wary of supply chain disruption and the cost-of-living crisis eating into consumers’ pockets.
Supply chain issues have continued to impact the availability of new and used cars alike as Lookers faces significant inflationary pressures.