Lookers PLC (LSE:LOOK) reported a surge in electric car sales in its latest half year though new car sales continued to struggle.
The Altrincham-based car dealership said electric vehicles (EVs) as a percentage of new car registrations jumped to 17.8% in the half year to June, against 12.5% in the same period a year ago.
In the UK overall, EV sales accounted for 14.4% of sales, up from 8.1%, but Lookers said it has focused on this sector in particular, which accounts for the higher percentage.
Interim revenues rose by 3.6% to £2.23bn, with pre-tax profits down slightly at £49.9mln as used car margins dropped from last year even though prices were up 27% on average.
Lookers said the new car market continues to be affected by a shortage of semiconductors, though demand is strong and margins here improved significantly as it worked through its stock.
Aftersales, which accounts for almost 35% of gross profit, also saw lower margins, which Lookers said was due to the rising cost of skilled labour.
Mark Raban, chief executive, said it was a very strong performance against an exceptional comparative period, despite ongoing inflationary pressure and vehicle supply disruption.
“Whilst mindful of the pressures facing consumers, we are confident in our strategic direction and retain our expectations for the remainder of the year,” he added.
The interim dividend was set at 1p.