UK Lookers shares rise on bright earnings outlook

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June 29 (Reuters) – Britain’s Lookers Plc (LOOK.L) said on Wednesday it expects full-year profit ahead of previous outlook as margins were boosted by vehicle shortages, although it warned that supply issues would continue for the remainder of 2022 and beyond.

Shares of the London-listed small-cap company rose 4% in early trade.

The company, which sells new and used cars, vans and aftermarket services, now expects first-half underlying pre-tax profit to be around £45m (54. 79 million dollars), against 50.3 million pounds a year ago. .

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The seller of brands including BMW, Ford and Volkswagen, said inflationary pressures, which have increased its energy and personnel costs, have been partially offset by “operational optimisation”.

“Uncertainties remain regarding the availability of these vehicles and we do not yet fully understand how inflationary pressures may affect both consumer demand and our operating costs,” the company said in a statement.

UK new car sales this year are likely to be lower than previously thought as Britain’s cost-of-living squeeze and ongoing chip shortages impact the car market, according to data from industry. Read more

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Reporting by Radhika Anilkumar in Bengaluru; edited by Uttaresh.V

Our standards: The Thomson Reuters Trust Principles.

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