Mark, a number of announcements that came out today. Tell us about the highlights. Yeah, Scott, we've had a really busy morning, actually. I guess there's three key things that I'd draw your attention to. First of all, we've completed our board restructure with the announcement of two key appointments. Delighted to welcome Ian Bull as our new Chairman and Oliver Laird as our group CFO. Both very highly experienced individuals. Ian has several NED roles in other public companies. He's on the board of Domino's Pizza and Dunelm. Oliver is currently CFO of CPP Group. Prior to that, he was finance director of First Direct. He does bring a huge amount of regulatory experience, which is really important for us. Of course, they're joining at such a key and exciting time. I'd like to thank Phil White, outgoing Chairman for the last 14 years, and the great support he's shown to me and the company. We've registered a record financial performance during the first half. We've got underlying profit before tax now of over GBP 50 million. That's been driven by strong market outperformance on both new and used, good margin growth, particularly on used, and ongoing cost control. Scott, the thing I'm really pleased about is the shape our balance sheet is in. We have over now GBP 30 million of net cash. I'm really pleased and proud to announce that we are now able to repay our 2021 U.K. government furlough receipts. That's over GBP 4 million going back to the U.K. taxpayer. Of course, that's been made possible through the hard work and commitment of all my fantastic Lookers colleagues. We're emerging from COVID, Scott, a better business, operationally, financially and culturally, and that's a good place to be. Now Duncan, onto yourself. What's been going on in the used car market? Yeah. Hi, Scott. It's been a really interesting time. Since COVID struck, demand for used vehicles has risen sharply, and with new vehicle supply currently impacted by the semiconductor shortages, would have further impact on used vehicle supply. That said, demand outstripping supply, we have seen five consecutive months of appreciation in used vehicle values, which is incredible and unprecedented. As such, we've seen a material improvement in used vehicle margin, and this margin improvement is currently mitigating any reduction in volume. Of course, we remain cautious as the market will normalize at some point in the future. Now Duncan, lots of talk in the press about inflation and labor shortages. Let's start with inflation. How's that impacting Lookers? I think it's fair to say, Scott, that there's pressure on inflation nationally. Everything you look at is becoming more expensive. We are seeing used vehicle values go up. Listen, for most things it's difficult at the moment. You only need to look at the supermarket shelves. Labor shortages, what impact is that having? With regards to labor shortages, Scott, this is definitely a concern. At this stage we haven't been too affected, and we believe this to be a manageable situation. This is a really, really exciting industry, and over the past nine months, we've done a lot of work on reward and recognition schemes to really retain and attract the best. We wanted to drive the right behaviors. We wanted the schemes to be simple, consistent, and rewarding. They've gone down really, really well with the team. I think it's also important to note that we onboarded 150 apprentices through the Apprenticeship Technician scheme, where many companies decided to cease that program during COVID, and I think this really stands us in good stead for the future. Mark, we've heard from Duncan. What impact are the new online-only entrants having on the market? Yeah. Well, I think it's really positive to have them coming into the marketplace as they have done. They're creating a huge energy, excitement, challenge and awareness, which from an entire industry sector perspective, has to be to the benefit of all of us. Like all retailers, we're having to respond to changing consumer preferences and buying habits, which as we know, have been highly influenced by online. COVID, of course, adding that on top, has meant that the pace of change has really accelerated. Our strategy remains clear and is based on our omni-channel hybrid approach, which gives customers the flexibility to move between channels. It enables the customer to decide how they want to interface with us. They drive. We think that is the winning formula. It's the customer's choice. You can really see that coming through our numbers now with a market share of approaching 7%. We're sticking with our strategy, but it's going to be fascinating to just watch how things develop over the next few years. Mark, lots of change that's happening in the market, but what does the future look like for Lookers? Well, I think we've got a really bright future ahead, Scott, and I'm really excited. As I always say, first and foremost, we've got the right brands in the right locations and very solid OEM relationships, all underpinned, of course, by a great freehold property portfolio, which gives us the flexibility to change and evolve our business model as the market changes around us. I've already talked about the changes that we've made to our hybrid omni-channel model. We are planning to continue to deliver on those changes and up our rate of change. It's very important that we give the customers exactly what they want. I think as well, there's going to be many, many opportunities from electrification, and that's not just limited to the sale of electric vehicles. We believe there's going to be many complementary revenue streams that sit around that. New aftersales revenue streams, connected car, additional technology, and a whole host of opportunities which come out of energy management. The electrification is going to be the biggest change in a generation, and I want Lookers to be at the forefront of that. We've talked a little bit about finances. I think we're in really good shape, and that's important because we need the firepower to invest organically and to look at acquisitions moving forward. Of course, most importantly and finally, we've got a great team and a great board. What's been achieved over the last two years is a absolute testament to what they're able to do. We have the aspiration to be the number one U.K. automotive retail group, and that is where we are heading.
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