The Lookers PLC (LON: LOOK) share price traded sideways after releasing its unaudited interim results for the six months to 30 June 2023. The car dealership network generated revenues worth £2,419 million, marking an 8% improvement from the H1 2022 restated revenues of £2,240 million.
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The leading UK-integrated automotive retail and service group revealed that its underlying profit before tax was broadly in line with last year, despite incurring an additional interest charge of £6.7 million. The company’s like-for-like sales grew 16.1%, with its used units contributing 3.5% and aftersales services contributing 13.5%.
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Lookers noted that it continued to generate cash robustly, as evidenced by its net funds of £101.4 million as of 30 June 2023 compared to £78.5 million as of 30 June 2022 and £66.5 million as of 31 December 2022.
The car dealership’s results were unsurprising, which explains why there was a muted reaction to the interim results today. However, investors are looking forward to the company’s acquisition by Global Auto Holdings.
The car sales and after-sales service provider confirmed its interim dividend of 1.00p per share, previously declared on 17 August 2023 and payable on 8 September 2023. The company’s management also confirmed that it had unanimously recommended the cash offer from Global Auto Holdings Limited.
Lookers has agreed to be acquired by Global Auto Holdings for an all-cash offer of 130p per share, which explains the recent rally in the company’s share price. The offer will be affected via a scheme of arrangement, and meetings to approve the offer are scheduled for 5 September 2023.
Lookers’ Chief Executive Officer Mark Raban said: “Against significant macroeconomic headwinds, the Group has once again delivered a good trading performance. I would like to thank the entire Lookers team for their amazing contribution and dedication to the company. The Board unanimously recommends the cash offer for Lookers by Global Auto Holdings Limited at 130p per share, which represents a premium of approximately 61%. The Board believes that the offer is in the best interests of all shareholders and provides an opportunity to crystallise, in cash, the value of their investments.”
Lookers share price.
The Lookers share price traded sideways on interim results for the six months ended 30 June 2023.
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