Lookers (LOOK)

Sector:

Retailers

Index:

FTSE Small Cap

52.90p
   
  • Change Today:
      0.30p
  • 52 Week High: 109.60
  • 52 Week Low: 41.60
  • Currency: UK Pounds
  • Shares Issued: 389.08m
  • Volume: 6,797,840
  • Market Cap: £205.82m
  • RiskGrade: 271
  • Beta: 0.00

Lookers profits drop; one-off investment plan announced

By Michele Maatouk

Date: Wednesday 14 Aug 2019

LONDON (ShareCast) - (Sharecast News) - Car dealership chain Lookers reported a drop in first-half pre-tax profit on Wednesday amid a "challenging" market backdrop, as it announced a one-off investment to address control issues in its sales processes.
In the six months to the end of June, underlying pre-tax profit fell 27.5% £29.2m, while revenue ticked up 2.7% to £2.65bn. The dividend per share was flat at 1.48p.

Like-for-like revenue grew 0.1%, with "encouraging" growth in used cars, aftersales and leasing.

An independent review of the company's internal control, risk assurance systems and internal audit commissioned last year found that there were some control issues in the sales processes in its regulated activities that required an improvement plan. Lookers said the plan has now been finalised and will require a one-off cash investment of around £10m.

It involves a detailed review of past business, the establishment of a revised sales process, a full training exercise across the group, the establishment of a new risk management and quality assurance frameworks and several developments to the company's IT systems. In addition to the one-off investment, ongoing underlying operating costs next year and beyond are expected to rise by around £3m a year "to deliver best practice and an enhanced customer experience".

Chief executive Andy Bruce said the first-half performance reflects "an ongoing backdrop of challenging UK market conditions for the sector".

"Whilst we are reporting lower profits year-on-year, we have made good progress on a number of strategic initiatives and have a clear investment plan to restructure and strengthen our regulated activities. Our balance sheet remains strong including our valuable property portfolio.

"Working closely with our brand partners I am confident in the long-term prospects for the business. The board's current outlook for the full year at the underlying profit before tax level remains unchanged."

At 1240 BST, the shares were up 0.3% at 44.12p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Lookers Market Data

Currency UK Pounds
Share Price 52.90p
Change Today 0.30p
% Change 0.57 %
52 Week High 109.60
52 Week Low 41.60
Volume 6,797,840
Shares Issued 389.08m
Market Cap £205.82m
Beta 0.00
RiskGrade 271

Lookers Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
91.17% above the market average91.17% above the market average91.17% above the market average91.17% above the market average91.17% above the market average
69.81% above the sector average69.81% above the sector average69.81% above the sector average69.81% above the sector average69.81% above the sector average
Price Trend
84.2% below the market average84.2% below the market average84.2% below the market average84.2% below the market average84.2% below the market average
74.55% below the sector average74.55% below the sector average74.55% below the sector average74.55% below the sector average74.55% below the sector average
Income
99.41% above the market average99.41% above the market average99.41% above the market average99.41% above the market average99.41% above the market average
94.87% above the sector average94.87% above the sector average94.87% above the sector average94.87% above the sector average94.87% above the sector average
Growth
70.44% below the market average70.44% below the market average70.44% below the market average70.44% below the market average70.44% below the market average
16.36% above the sector average16.36% above the sector average16.36% above the sector average16.36% above the sector average16.36% above the sector average

What The Brokers Say

Strong Buy 1
Buy 1
Neutral 2
Sell 0
Strong Sell 1
Total 5
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Lookers Dividends

  Latest Previous
  Interim Final
Ex-Div 17-Oct-19 25-Apr-19
Paid 22-Nov-19 05-Jun-19
Amount 1.48p 2.60p

Trades for 20-Sep-2019

Time Volume / Share Price
16:37 28,201 @ 52.90p
16:35 6,110,246 @ 52.90p
16:29 1,818 @ 52.00p
16:29 1,691 @ 51.60p
16:29 65 @ 51.60p

Lookers Key Personnel

CEO Andrew Campbell Bruce
Chair Philip Michael White
CFO Mark Douglas Raban

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