Car dealership Lookers reported a dip in interim profit on Wednesday as supply disruption made trading conditions challenging.
In the six months to the end of June, pre-tax profit nudged down to £49.9m from £50.4m in the same period a year earlier, with revenues up 3.6% at £2.23bn.
Underlying pre-tax profit fell to £47.2m from £50m. Lookers said this was against “an exceptionally strong” comparative in 2021, which benefited from £12.7m of government support, and despite rising employment and utility costs.
Underlying net operating expenses increased 15.1% from the first half of 2021 to £224m.
Like-for-like revenue rose 3.7%, with increased revenue from used cars and aftersales partially offset by lower new vehicle revenue.
Lookers said trading in July and August has been in line with expectations. Margins remain at the same levels as during the first half and the order book for the remainder of the year remains strong, it said.
Chief executive Mark Raban said: “Our first half financial performance was very strong, against an exceptional comparative period, despite ongoing inflationary pressure and vehicle supply disruption. We have also made excellent progress with our strategic priorities.
“Whilst mindful of the pressures facing consumers, we are confident in our strategic direction and retain our expectations for the remainder of the year.”
