Lookers in the red after £504m take-private deal
Car dealership giant Lookers slumped into the red in the year it was taken private in a deal worth more than £500m.
The Cheshire-headquartered business has reported a pre-tax loss of £5m for 2023, having posted a pre-tax profit of £73.9m in 2022.
The loss comes as newly-filed accounts with Companies House show Lookers’ revenue increased in the 12 months from £4.31bn to £4.59bn.
Global Auto Holdings snapped up Lookers in October last year for £504m in a move which saw it delist from the London Stock Exchange.
During the year, Lookers sold 97,218 new vehicles, up 15.8 per cent, while it shifted 80,880 used vehicles, a 2.2 per cent rise on 2022.
Inflation drives up costs at Lookers
A statement signed off by the board said: “The group’s trading performance was strong, with all channels showing revenue growth.
“New vehicle volumes grew 15.8 per cent, driven by fleet and commercial vehicle sales.
“Due to supply constraints resulting from the semiconductor shortage in 2022, the OEMs prioritised supply to the more profitable retail channel which resulted in volume reduction within both our fleet and commercial vehicle channels.
“As supply restrictions eased in 2023, this pattern was reversed, driving significant growth in these channels.
“The group’s used vehicle volumes increased 2.2 per cent against prior year performance.
“Used vehicle margin was affected by the return of new car supply which eroded profitably through the year on a comparative basis and is the driver of overall gross profit decline year on year.”
Lookers added that inflationary pressures impacted its cost base causing a £14m increase in underlying operating costs.
It added that higher interest rates saw its finance costs grow by £17m.