Lookers PLC (LSE:LOOK) saw its shares rise on Wednesday as the car dealership group said it expects underlying pretax profit for 2023 to be ahead of its previous expectations, albeit as pretax profit fell in 2022 against a strong comparable year,
The firm saw its pretax profit fall to £84.4mln in the year ended 31 December 2022, down from £90.0mln in 2021, while underlying pretax profit fell to £82.7mln from £90.1mln.
However, the group's revenue rose to £4.30bn, up from £4.05bn in 2021, thanks to growth in all divisions except its Leasing and Other unit, as average selling prices grew by 12%.
The company proposed a final dividend for 2022 of 2.0p a share, making a full-year dividend of 3.0p, 20% higher than 2021's 2.5p.
Lookers said it had a strong first quarter in 2023, with underlying pretax profit ahead of the prior year's level thanks in part to growth in used vehicle and aftersale revenue.
In the 2022 results statement, Mark Raban, Lookers' chief executive officer, commented: "We have strong momentum in the execution of our strategic priorities. Our operational optimisation agenda remains the cornerstone of our strategy and we have made demonstrable progress on our self-help initiatives. In addition, I am particularly pleased to see the expansion of our offerings through partnerships with a number of exciting new brands and the addition of incremental revenue streams including cosmetic repairs."
He added: "We remain mindful of pressures faced by the consumer and on discretionary spending. However, we are confident in our proposition, our balance sheet and strategic focus, with significant opportunities ahead. With good momentum across the business, we have continued to trade strongly in Q1 2023, and the board's outlook for underlying PBT for the current financial year is now ahead of its previous expectations."
In early trading, Lookers shares were 2.9% higher at 87.50p.