Car retail giant set to beat expectations with £10m underlying profit

LISTED COMPANY LOOKERS LOOKS SET TO REPORT INCREASE FROM 2019’S £4.2M

NATIONAL car retail giant Lookers is set to beat market expectations and report an acceleration in its pretax profits for the group’s latest financial year.

The listed company, whose headquarters are based in Altrincham, has revealed its underlying profits are expected to be about £10m for the 12 months to December 31, 2020, up from the £4.2m it achieved in 2019.

Market analysts had predicted that the group would report a “small loss” for the year. A statement to the London Stock Exchange said: “Work continues in line with plan on the group’s financial statements for the year ended December 31, 2020, and the group now expects to report underlying profit before tax of approximately £10m (2019: £4.2m).

“This compares to analyst consensus of a small loss.

“As previously reported, the board expects net debt of approximately £45m at December 31, 2020 (2019: £59.5m).

“The group’s revolving credit facility expires in March 2022 and, as previously disclosed, discussions with our banking partners are progressing.

“Net debt has significantly reduced since the year end.”

The group added that it will issue a trading statement in April for the first quarter of 2021 and confirm the dates of its preliminary results announcement and AGM.

The audit of the group’s financial statements for 2020 is being undertaken by its new auditor, BDO LLP, “and is progressing as planned”.

The update comes after an investigation into the national car retail giant was dropped by the Financial

Conduct Authority (FCA) - although concerns were raised.

The FCA, which first announced its investigation into Lookers plc in June 2019, had been looking into the listed company’s sales processes between January 1, 2016, and June 13, 2019.

However, the watchdog has now advised the board of its decision to close the investigation against Lookers Motor Group, the group’s FCA regulated entity, for the possible mis-selling of regulated products, and associated issues relating to potential customer detriment during the period.