A recent financial report reveals significant changes at Lookers, a Cheshire-based car dealership.
- The company has suffered a £5m pre-tax loss for 2023, contrasting with a £73.9m profit in 2022.
- A £504m acquisition led to Lookers’ delisting from the London Stock Exchange.
- Despite losses, revenues rose from £4.31bn to £4.59bn over the past year.
- Increased operating costs and interest rates significantly impacted profitability.
Lookers, a prominent car dealership headquartered in Cheshire, has experienced a noteworthy financial downturn. The company reported a £5m pre-tax loss for the year 2023, a stark difference from the £73.9m profit registered in 2022. This downturn followed a significant take-private transaction valued at over £500m, orchestrated by Global Auto Holdings, resulting in Lookers’ removal from the London Stock Exchange.
Despite facing financial losses, Lookers managed to increase its revenue from £4.31bn to £4.59bn over the last twelve months. The dealership recorded sales of 97,218 new vehicles, a 15.8% increase, and 80,880 used vehicles, marking a 2.2% growth from the previous year. According to the company’s board, all sales channels exhibited growth, driven notably by fleet and commercial vehicle sales.
In 2022, Lookers faced supply constraints due to semiconductor shortages, compelling manufacturers to prioritise the more profitable retail channels. However, as these restrictions eased in 2023, the company saw robust growth in its fleet and commercial vehicle divisions. This shift, while boosting sales volumes, also impacted the margins on used vehicles, as the return of new car supply diminished profitability compared to previous years.
The dealership also felt the pressures of inflation, which added £14m to its operating costs. Furthermore, a rise in interest rates contributed to a £17m increase in finance costs, compounding the challenges to its financial stability.
Lookers faces a challenging financial period, emphasised by increased revenues but significant net losses.
