Lookers, the car dealership giant, has reported a pre-tax loss of £5m for 2023, a significant downturn from its pre-tax profit of £73.9m in 2022. The Cheshire-based firm was taken private in a deal worth over £500m last year.
Despite this loss, newly-filed accounts with Companies House reveal that Lookers' revenue increased from £4.31bn to £4.59bn over the past 12 months, as reported by .
Global Auto Holdings acquired Lookers for £504m in October of the previous year, leading to its delisting from the London Stock Exchange.
Over the course of the year, Lookers sold 97,218 new vehicles, marking a 15.8 per cent increase, and 80,880 used vehicles, a 2.2 per cent rise compared to 2022.
A statement approved by the board read: "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."
Lookers stated: "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."
The company also mentioned that inflationary pressures had a £14m impact on its cost base, resulting in a £14m increase in underlying operating costs.
Additionally, Lookers noted that higher interest rates led to a £17m increase in finance costs.
