Lookers PLC (LSE:LOOK) increased underlying profit more than fivefold last year but said the business and its customers face uncertainties in 2022.
The past calendar year was a record one for the car dealer, with revenue up 9.5% to £4.05bn and underlying profit before tax surging 557% to £90mln.
Used car sales rose 8% on a like-for-like basis, while for new cars registrations of battery electric vehicles (BEVs) increased by 76%, as new diesel registrations declined 48% and petrol car registrations by 16%.
Lookers declared a final dividend of 2.5p per share and set out thoughts on its capital policy, targeting dividend cover of 3.5x to 4.5x and low levels of gearing, while continuing to invest in the business to grow revenues and profit.
Strategic priorities include expanding its partnerships with car manufacturers, including adding further electric vehicle brands this year and next; increasing used vehicle outlets, including two five-acre ‘Lookers Cube’ multi-brand sites; and growing its new cosmetic repair offering.
Chief executive Mark Raban said: “The business and our customers face some uncertainties in 2022. Trading in Q1 has been strong despite new vehicle supply remaining tight. The current crisis in Ukraine and significant cost of living increases will put pressure on consumer sentiment and disposable incomes.”
However, he said the group is confident about the future, having emerged from the pandemic period “stronger and with a clear strategy to navigate future challenges and drive value for all our stakeholders".