Lookers - Smoothing out the bumps

Lookers continues to perform robustly as the UK car market faces supply constraints for both new and used vehicles. While volumes are down, used prices are strongly ahead year-on-year despite plateauing in H122. As a result, Lookers expects £45m of underlying PBT in H122, ahead of its expectations. Conditions may moderate further in H222, but management still expects FY22 to be ahead of its previous expectations. We have increased our FY22 underlying PBT by 17% to £62m, while maintaining our FY23 estimates as we expect demand to face increasing challenges.