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UK's Lookers shares rise on upbeat profit outlook

UK's Lookers shares rise on upbeat profit outlook
By Reuters
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- Britain's Lookers Plc said on Wednesday it expects annual profit ahead of a prior outlook as margins get a boost from vehicle shortages, although it warned that supply snags are seen continuing for the remainder of 2022 and beyond.

Shares of the London-listed smallcap company rose 4% in early trade.

The company, which sells new and used cars, vans and offers after-sales services, now expects underlying profit before tax for the first half of the year to be around 45 million pounds ($54.79 million), compared with 50.3 million pounds a year ago.

The seller of brands like BMW, Ford, and Volkswagen, said inflationary pressures, which has increased its energy and staff costs, were partially offset by "operational optimisation".

"Uncertainties remain on the availability of these vehicles and we are yet to fully understand how inflationary pressures may impact both consumer demand and our operating costs," the company said in a statement.

British new car sales this year will likely be lower than previously thought as the cost-of-living squeeze in Britain and persisting chip shortages impact the auto market, industry data showed.

($1 = 0.8214 pounds)

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