Boss departs Taggarts firm Lookers amid profit malaise

● Andy Bruce has been with motor retailer since 2000 ● Firm guiding towards weaker full-year earnings

Lookers, the UK car dealership with a string of showrooms north of the Border, has parted company with its chief executive after 19 years as the group yesterday warned of fresh pressures on the new car market.

The Taggarts owner, which had already issued a profit warning in July, said trading since mid-september had “been much more challenging than expected”.

Chief executive Andy Bruce, who has been with the company since 2000 and took the top seat in 2014, and chief operating officer Nigel Mcminn are leaving and a search for their replacements is already under way.

Chairman Phil White warned investors: “It is disappointing to report this downturn in trading, but we have taken action to drive the future financial performance of the group.

“The board is resolute in its determination to restore the group’s fortunes with market leading practices in the sector.”

Bruce added: “After nearly two decades with Lookers, it is now time for me to move onto new ventures and allow new leadership to take the business into its next chapter.”

Mcminn added: “I have enjoyed helping to build the businessatlookersandworking with a great team of people.”

The firm now expects underlying pre-tax profits to come in at some £20 million this year, compared with £67.3m in 2018.

It blamed the weak performance at its 150 showrooms on “ongoing weakness in consumer confidence in the light of political and economic uncertainty, pressure on used car margins and retail cost inflation”.

The board has accelerated the sell-off of non-core assets, although site closures are expected to cost £8m this year.

In the three months to the end of September, like-for-like sales of new cars fell 3.2 per cent compared with a decline of 1.2 per cent in the first half year.

The used car market was more stable, with like-for-like unit sales up 2.6 per cent compared with a rise of 2 per cent for the first half year.

White is taking over as executive chairman and non-executive director Richard Walker will also take on a part-time executive role.

Analysts at Numis Securities said: “In a brought-forward update Lookers has reported a Q3 trading update alongside the departure of [its] CEO and COO.

“A more challenging than expected trading performance, in particular in the new car market since mid-september has driven management to guide to [profit before tax] of circa £20m (versus Numis previous [estimate of ] £38m).”

They have a “hold” recommendation on the shares, “awaiting improved visibility on the trading outlook”.