A jump in used car sales helped dealership giant Lookers achieve pre-tax profits of £90m and its revenue to surge to more than £4bn during its latest financial year.
The Greater Manchester-headquartered company had previous achieved a revenue of £3.6bn and profits of £1.5m during the year to December 31, 2020.
The revenue generated by the used vehicles sold in 2021 increased from almost £1.8bn to more than £2bn while the gross profit from those sales rose from £117.9m to £180.3m.
READ MORE: Managing director of Manchester Airport steps down amid intense criticism
Revenue from new vehicles also increased from £1.7bn to £1.8bn, with gross profits rising from £109.2m to £131.3m.
The financial results come after the owner of WeBuyAnyCar.com and Cinch acquired an almost 20% stake in Lookers in January.
Chief executive Mark Raban said: "2021 was a record year for Lookers. We navigated another year of limited new vehicle supply and Covid-19 disruption.
"We have reported excellent profits and cash generation, through strong used car margins, continued focus on costs and the unstinting efforts of our people.
Most Read
"We have successfully moved back to a net funds position in the business and have a strong balance sheet, underpinned by our property assets, supporting our investment capacity to grow the business.
"The business and our customers face some uncertainties in 2022.
"Trading in Q1 has been strong despite new vehicle supply remaining tight.
"The current crisis in Ukraine and significant cost of living increases will put pressure on consumer sentiment and disposable incomes.
"However, the group is looking forward to the future with confidence.
"It has emerged from the challenges of the past couple of years stronger and with a clear strategy to navigate future challenges and drive value for all our stakeholders."
On its outlook, the group added: "In January the board was delighted to welcome Constellation Automotive Group as a significant shareholder in the group.
Don’t miss
"Their investment endorses the board's view that the group has excellent prospects and is significantly undervalued.
"The 19.9% holding was purchased from Tony Bramall and family, who remain shareholders in the group, and the board would like to thank Tony for his years of service as a director and for his support for Lookers.
"We are mindful of the continuing Covid-19 pandemic, the deeply concerning current crisis in Ukraine, and significant cost of living increases putting pressure on disposable incomes, all of which mean some uncertainty for the business and our customers over the coming months.
"New car supply challenges also remain an issue and one that has continued into the current financial year.
"However, we feel relatively well placed given our strong relationships with manufacturers and the operational improvements we have made and are making to the business.
"The group's good cash flows and strengthened balance sheet backed by some £290m of property assets means that we can fund our expansion and strategic initiatives.
"Our order bank remains strong, and current trading is encouraging.
"In conclusion, the group is looking forward to the future with confidence. It has emerged from the challenges of the past couple of years stronger and with a clear strategy to navigate future challenges and drive value for all our stakeholders."