Lookers is one of the largest UK motor vehicle retailers, with its new car operations supported by the strength of used and aftersales activities. It now operates 153 franchises, representing 33 marques from 100 sites around the UK and Ireland.
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Lookers is the second largest UK new car retailer. Despite significant pandemic and new vehicle supply disruption, a focus on cost control and working capital optimisation contributed to a record FY21 performance. Notwithstanding supply constraints, strong momentum has continued in H122. Inflationary cost pressures are a challenge and could dampen demand into FY23. Investment to optimise operational performance and address long-term market trends is increasing, supported by the healthy balance sheet. Adjusted net cash (ex leases) at 31 May was £62.4m (FY21 £3.0m). Lookers now anticipates FY22 underlying PBT of around £45m ahead of its prior expectations; our FY22 estimates reflect that.
Y/E Dec |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (fd) (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2020A | 3699.9 | 95.0 | 13.7 | 2.97 | 26.2 | 4.4 |
| 2021A | 4050.7 | 165.1 | 90.1 | 19.95 | 3.9 | 2.7 |
| 2022E | 4124.6 | 136.1 | 62.0 | 12.74 | 6.1 | 3.6 |
| 2023E | 4370.0 | 137.8 | 60.0 | 12.03 | 6.5 | 3.4 |
Industry outlook
Market dynamics favour larger motor dealership groups against smaller independent groups, which still command c 60% of the franchise market. Global manufacturing overcapacity still points to OEM support. However, the sector is normally rated for recessions and economic shocks like these and has survived two dramatic crises in 2008/09 and 2020/21.
Last updated on 12/08/2022Content on Lookers
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Industrials
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Share price graph
Balance sheet |
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| Forecast net cash (£m) | 37.7 |
| Forecast gearing ratio (%) | N/A |
Price performance
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Key management |
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| Ian Bull | Chairman |
| Mark Raban | CEO |
| Oliver Laird | CFO |